We cover EU/ASIA relations with an exceptional
contribution by Noel Quinn is Group General
Manager Regional Head of Commercial Banking
Asia Pacific for the HSBC Group.

& Beyond

ECONOMIC UPDATE
THE

Special Feature:
Portomaso Business Towers
AUGUST 2013

“There are no secrets to success. It is the result of
preparation, hard work, and learning from failure.”
For magazine and website advertising enquiries
please contact:
margaret@networkpublications.com.mt
or call on (+356) 9940 6743

Please feel free to email us with your viewpoint, whether
you agree or disagree with the standpoint of the
personalities we interview or the topics we focus on.
Your opinion, contribution, concern and feedback on our
articles and interviews are welcome. Please include full
name, contact details

An extraordinary 20-page pull-out supplement
featuring for the first time in Malta Portomaso
Business Towers, including a Foreword by Tumas
Group Chairman Mr. George Fenech. Participants
include (in sequence) Zampa Jewllers, Hilton
International, DeForte, Mdina Glass, Valletta Fund
Management, Level 22, Zeri’s Restaurant, D,
Portomaso Car Park, Boatcare Ltd, FXDD, and
Sparkasse Bank.
24 THOUGHT LEADERSHIP
We interview Ms Maria Mallia, who made history
in July 2013 becoming the first woman to head the
Malta Institute of Accounts

18

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All rights reserved. Reproduction in whole or in part is strictly prohibited without written permission. Opinions expressed in The Economic Update are not necessarily those of
the editor or publishers. All reasonable care is taken to ensure truth and accuracy, but the editor and publishers cannot be held responsible for errors or omissions in articles,
advertising, photographs or illustrations. The Economic Update is printed by PRINTIT and distributed free with The Business Weekly.

03

EDITOR’S NOTE
When Alexander the Great died in 323 B.C., his
empire was divided into four kingdoms, one of
which was ruled by Ptolemy I, one of Alexander’s
generals. Ptolemy’s kingdom was located in what’s
now northern Egypt, and like some earlier kingdoms
in India, Ptolemy used elephants in battle, to great
success. Ptolemy II, seeing elephants were so
effective, decided he needed far more elephants to
secure and expand his empire.
The problem for Ptolemy II, though, was that
elephants were only obtained from Asia�through a
rival kingdom, meaning that his source of elephants
was essentially cut off. Through trade with people
who lived south of his kingdom, Ptolemy II learned that
elephants also lived further south in Africa�not just
Asia. Ptolemy II also had an interest in other exotic
animals, not just elephants, and displayed them as a
symbol of his power and wealth.

24

OK, so we don’t live in the 4th century B.C. But trying to build business centre and
get clients in the 21st century A.D. one must have a variety of experience, knowledge,
and expertise. And as the saying goes: if you do what you have always done, you
will get what you always acquired. If you want something different, you need to
do something different. And the remarkable Tumas Fenech always wanted to do
something different. The point made is that it requires a mindset shift that moves
you away from deliverables and trivia, and where you instead focus on higher-order
outcomes and objectives. Tumas Fenech’s legacy lives in with the Portomaso Business
Tower � an example of high value deliverable. Tumas is a great example of a person
who identified his niche and understood his objective. Tumas Fenech is a Maltese icon.
And Portomaso Business Tower is also a Maltese iconic landmark.
Like Tumas, we at The Economic Update identified our niche and understand that we
have a business centre which makes things happen and changes lives. Our team has
worked hard to bring you this month’s exclusive feature about Portomaso Business
Tower, a business and iGaming centre with high-value corporate organisations
focusing on high value outcomes.
We are proud to present our readers with a unique 20 page pull-out-and-keep
supplement featuring the 98 metres tall Portomaso Business Tower, together with
its top-quality businesses and surrounding restaurant and brand outlets. We wish to
thank all those who have collaborated with us, including Portomaso businesses and all
advertisers. Special thanks to George Fenech and Tumas Group.

Martin Vella

28 SUSTAINING MARKET SHARE
THROUGH GRANTING CREDIT

30
34

32

Another first: Josef Busuttil, Director
General Malta Association of Credit
Management on good management
credit practices

30 WE SERVE YOU BETTER
Mark Vassallo MD at Servgroup Ltd,
states his reasons why Aluserv work
assiduously towards being the pioneers in
offering new and better aperture systems

32 ONLINE PRESENCE –
BEYOND SOCIAL MEDIA
Secialising in information security and IT
assurance by Robert Farrugia, Manager
within KPMG’s IT advisory team

36 HYDROGEN FUEL CELLS AND
ETHANOL
An alternative energy essay by special
correspondent courtesy of EIA

38 SHAPING THE FUTURE OF
FINANCIAL SERVICES IN MALTA:
DELIVERING IN 2020
High quality content on the financial services
sector by Giles Schembri, Partner at KPMG

COVER STORY

Edward Aguis with RE/MAX CEO & Founder, Kevin Buttigieg
04|

www.maltaeconomicupdate.com

IT EDUCATION
COVER
STORY

DYNAMICS IN THE
Letting Industry

By Martin Vella

The Economic Update meets up with Edward Agius, the longest serving employee of the company
who now mentors twenty three letting associates as the manager of the company’s RE/MAX Lettings
franchise. We discuss with him the dynamics of the Industry and just how important the business of
letting is to RE/MAX Malta, the industry in general and what lies in the future for the industry
BACKGROUND
Kevin and Jeffrey Buttigieg, the founders of
RE/MAX Malta, were the pioneers of the
letting Industry when they started out the first
fully specialised letting company in 1999, JK
Properties Ltd. From a humble four man office
located on the first floor at Regent House in
Sliema, the company purchased the rights to
the International franchise and exponentially
grew year after year, becoming the largest real
estate firm on the Maltese Islands.
TEU: When did you join the company and
how did you get to where you are today,
Manager of the letting franchise, RE/
MAX Lettings?
EA: At the tender age of 20 I was working
for another reputable real estate company
when a colleague of mine informed me that
Kevin Buttigieg wanted to meet with me to
discuss the possibility of working in lettings.
Kevin immediately convinced me that renting
property was straight up my street and so
I started my RE/MAX journey. With the

continuous support and mentorship of Kevin, I
excelled in the field of letting as a top performer.
As the company started to grow and there was
discussion of the International brand, I was
asked to hold the mantle of the letting team,
since Kevin and Jeffrey took on different roles
within the company. Being what the letting
business was and still is today, treated as the
company’s baby, there is a lot of pressure to
perform. However, knowing that the company
directors always believed in me, I have managed
to develop and increase the letting team from
six associates up to twenty-three, and we have
plans to grow this even to thirty associates.
TEU: Malta has turned itself in to a hub
for businesses around the world and over
the past six to seven years there has been a
great influx of companies setting up in Malta
from the iGaming, Finance, IT and other
Industries. Why would a company choose
RE/MAX Lettings to take care of their
corporate needs?
EA: At RE/MAX, we have built our letting
business on professionalism, a strong work ethic

and creating lasting relations and friendships
with clients. This has come by being proactive
in our approach, having the strongest database
of properties in the market and trained
professionals providing a superior service.
Over the years and to-date, we continue to be
selected as the preferred real estate company
to successfully manage the long and short term
accommodation of large scale projects, igaming
companies, finance companies, tech companies
and everything in between.
“we have built our letting business
on professionalism, a strong work
ethic and creating lasting relations
and friendships with clients”

My team is made up of a group of specialised
associates that work in different market
niches and thus we are in a position to
provide a comprehensive service to any
company executive or individual looking to
rent a commercial office or residential home.
Moreover, we also provide ancillary services
during and after the relocation. These services
August 2013 | THE ECONOMIC UPDATE

| 05

COVER STORY

EA: In terms of the future of the letting industry,
we are certain that the industry will continue to
grow. Malta being a jurisdiction of excellence, it
is attracting companies to our shores consistently
whereas established companies are expanding.
We are hearing that conditions in other
jurisdictions are becoming weary thus Malta is
a more stable choice and we foresee some large
scale companies setting up in Malta soon.

Celebrating their 9th consecutive year of growth at
their Annual General Conference.
come in the forms of hotel accommodation,
car leasing, we also may offer a maid service,
procurement of internet and satellite television
services as well as a handy man service. Finally,
we are active in the business communities
where we do business. Every year we exhibit at
the largest iGaming exhibition in Excel London
called ICE, we sponsor iGaming events such
as the popular iGaming Socials and we are
an organising partner of the Malta iGaming
Seminar to mention a few industry based events
that we are involved in. To sum it up Martin,
we are probably the most proactive company
in our industry that focuses solely on providing
the best service possible.
TEU: How important is the letting business
to the economy and most important how
do you feel RE/MAX Malta values the
business of letting?
EA: Firstly, RE/MAX Malta now and JK
Properties Limited back then has always valued
letting as a core business. Our vision has
always been clear even when the company had
started selling property and rebranded to RE/
MAX. Remember, back in 1999 we were the
first company in Malta to really focus solely on
letting whereas our competitors treated letting
as a side business. Thereafter, we continued to
lead the industry by growing our workforce to
the extent that our competition followed. The
company definitely treats RE/MAX lettings as an
important key element of our core business and
are truly focused in growing it to new heights.
From an industry point of view, the letting
industry has a huge multiplier effect on the
economy and this is one of the reasons why
the Maltese government is in discussion to
reduce the tax band on rental incomes. This
will incentivise investors to buy to let. When
a rental investor acquires a property the
investment does not stop there. They need to
buy furniture, they usually decorate, purchase
white goods whereas the tenant needs a maid,
purchase groceries, frequents restaurants and
so on and so forth so you can see the effect it
has on the economy with one property. On
06 |

www.maltaeconomicupdate.com

the other hand you may get a clearer picture
when you realise that there are over 4500
people employed in an industry such as the
iGaming industry. I am sure that the Maltese
Government will continue their excellent work
in keeping Malta as the great Mediterranean
business hub it is today.
“the letting industry has a huge
multiplier effect on the economy
and this is one of the reasons
why the Maltese government is in
discussion to reduce the tax band
on rental incomes”

TEU: Can you give me a guideline on what
types of commercial and residential properties
are more sought after in today’s market? Why
would a client choose RE/MAX Lettings as
their one stop shop?
EA:
With the influx of companies the
commercial real estate industry has exponentially
grown over the last few years. We have seen a
large improvement in these accommodations
where Malta today is meeting international
standards. Customers commonly look out for
highly finished, open plan offices with telecoms
and internet ready to plug in and play. With
regards to the residential market it obviously
depends on what hierarchy level that the
employee is on. Executives or C-level employees
look for apartments within one of the lifestyle
developments whereas the most looked out
types of properties by staff and managerial level
are those apartments that have 2 bedrooms
and are newly decorated in a modern style and
located in Sliema and St. Julian’s areas.
We have the knowhow, resources and the
aftersales service to be able to put a customer’s
mind at rest knowing that their needs will be
always be met in a timely manner and with
their best interests at heart.
TEU: What is the future of the letting industry
and how does RE/MAX Lettings intend to
remain the trend setters and industry leaders?

As for RE/MAX Lettings, we will continue to
build our business by nurturing relationships,
investing in the education of our associates
and by being innovative. Innovation is crucial
because of increased competition and also
because the market keeps changing at times
very quickly. Dr. Edward de Bono says it is better
to change yourself then let your competition
change you. President Obama says that in an
ever changing world you cannot afford to stand
still. So it is important to create an enabling
environment with my team to be innovative.
We are looking to recruit a few more agents
which will complete our letting team. At the
moment our team is spread out in three regions,
North, South and Sliema and St. Julian’s whereas
we are looking for some outgoing aspiring
individuals to specialise in the Central areas of
Malta and we are looking for others that will
complement the rest of the team.
TEU

All rights reserved | Copyrighted

Editor’s Note
Edward Agius
has
worked
in the letting
Industry
for
over thirteen
years. In 2004,
he
became
m a n a g e r
of
RE/MAX
Lettin gs
and
today
mentors 23 lettings associates under
the guidance of Kevin Buttigieg, CEO
of RE/MAX Malta. Edward is inspired
by his late Father, Mario Agius, a
renowned photographer, and is
committed to follow in his footsteps
by inspiring others to work with
integrity and respect. Edward has
an active interest in the local football
scene having been associated with
different prominent local football
clubs in the past before becoming a
member of the committee of Luxol
St. Andrews FC in 2012. You may
contact Edward Agius on his Mobile is
99425088, Direct Line 2578 3303 or
by email: edward@remax.com.mt

Speaking with The Economic Update, Dr Simon Busuttil gave a cautious reprimand regarding the damage
that can be created to Malta’s reputation with worrying remarks. Here he shares his views regarding the
future of the Nationalist Party, LGBT issues, leadership values and his plans on winning back respect and
trust of the people.

This is part 2 of an interview conducted in July 2013.

TEU: Recently, Joseph Muscat said he
might use the veto in the European
Parliament, which brings to mind the
Helsinki shenanigans by Dom Mintoff.
Don’t you think that that is going to create
a lot of problems on how the EU member
states view Malta and how the EU will deal
with Malta?
SB: Yes this is precisely what we have been
saying. The very statement, or threat, that
Malta would consider using its veto in
areas which are unrelated to immigration
sends shockwaves throughout the European
Union and its institutions. This will isolate
Malta and its Government. What could we
possibly gain from this? The Prime Minister
would do good to remember that the last
person who threatened to use the veto
was the far right Italian Interior Minister
Roberto Maroni. And what was the result of
all this? Italy was isolated from the Council
of Ministers because of Maroni’s stand. We
now have a socialist prime minister in Malta
speaking like a minister belonging to the far
right. This is incomprehensible! The Prime
Minister’s handling of this situation has
undoubtedly harmed our reputation, which
took us nine years of hard work to develop.
Here we have a Prime Minister who is very
good at playing the populist card but who has
not yet realized that his actions are extremely
short-sighted. This is a very dangerous game,
and the implications of these statements
could lead to very serious repercussions. We
must keep in mind that if, God forbid, we
are isolated at EU level, this will have ripple
effects across the board, including in foreign
relations and investment.
TEU: What is your position regarding the
gay community and LGBT issues such as
same-sex partnerships, noting the party’s
lukewarm stance in the past?
SB: Unfortunately, the Nationalist Party in
Government did not do enough to address
the concerns of the gay community. This is
08 |

www.maltaeconomicupdate.com

something I had already started addressing
and would like to address fully in Opposition.
For instance, in the Nationalist Party’s
electoral programme, we had made two
important pledges to the gay community:
first of all, to amend the Constitution by
inserting a clause against discrimination
on grounds of sexual orientation. And
secondly, we made a commitment to
introduce civil partnerships. The second
pledge in particular marked an important
step forward for the Party. But it is patently
clear that these commitments came too late
in the day, by which time we had already
lost the trust of the gay community. I want
to rebuild that trust. In fact, one of our first
decisions from the Opposition benches was
to table a private members’ bill proposing
the insertion of the non-discrimination
clause in the Maltese Constitution in line
with our electoral promise. By acting on our
commitments, we are now bridging the gap
with the gay community.
“The very statement, or threat,
that Malta would consider using its
veto in areas which are unrelated
to immigration sends shockwaves
throughout the European Union
and its institutions. This will isolate
Malta and its Government”

TEU: The PN had no answer to Joseph
Muscat during the last election and
resorted to negative mudslinging. What
do you have to say about this?
SB: First of all, I think the Nationalist Party
was wrong in underestimating Joseph
Muscat. However, it would be unfair to
criticize the Nationalist Party as though it
was the source of the negative voice of the
election campaign. Lest we forget, the first
negative story to break out over the course of
the campaign was the Enemalta oil scandal.
Here we had a scandal which took place ten
years ago, but which was brought up as a
political attack during an election campaign

ten years later. To top it off, the Nationalist
Party was the party accused of being negative!
Over the past five years, the Labour Party was
always an extremely negative Opposition and
yet admittedly it managed to portray itself
as a positive force in the last nine weeks of
the campaign. Joseph Muscat is strongest in
marketing and media hype, and in the end he
managed to sell the Labour Party as a positive
party. Indeed, his greatest challenge now is

INTERVIEW OF THE MONTH

to translate the media hype he created into
action, something he is clearly finding very
hard to achieve.
TEU: What does leadership mean to you?
SB: A leader is expected to take decisions
and, quite simply, to lead. This means taking
decisions in the best interests of the people a
leader represents, even if these same interests
are not popular or not immediately apparent.
In my opinion, what differentiates a charismatic
leader from a populist leader is that populist
leaders pander to the public mood and simply
shift their flag according to the direction of the
wind. I refuse to be a populist leader, even if this
can appear unpopular at first. One of the clearest
examples of this was my stand on immigration.
A leader must also motivate those around
him, and this is a fundamental challenge for
me right now at party level. As we rebuild
the foundations of the Nationalist Party
on all fronts – organizationally, financially,
politically – I am working with our leadership
team to open the doors of the party, bring

people together, generate enthusiasm and
motivate our grassroots campaigners and
volunteers. We have huge challenges ahead
of us, and we can only rebuild the party by
having all hands on deck.
Another crucial challenge for a leader is to
rebuild trust and credibility. I don’t expect
the public to trust me simply because I am
the leader of the Nationalist Party. I want
to earn the public’s respect by representing
them in a fair, consistent and transparent
manner. I did this both as a Member of
the European Parliament and as Deputy
Leader, and I will definitely keep this style of
leadership as party leader.
“The decisions implemented as
part of this restructuring exercise
are expected to start bearing fruit
by the end of September, when we
will register our first steps towards
sustainable accounts and wage bill”

TEU: Do you believe in marketing?
SB: Yes, marketing is a crucial component
in every aspect of public life, but it should
never come at the expense of substance.
TEU: What are you doing to tackle the
Party’s current financial situation?
SB: The Party is currently undergoing a major
restructuring process aimed at placing its
companies on a sound financial footing. This
has entailed several decisions, all of which were
aimed at making our commercial entities leaner
and more efficient. These decisions are being
taken as a result of the recommendations given
to us by the Party’s Finance Commission headed
by Ray Bugeja.
The decisions implemented as part of this
restructuring exercise are expected to start
bearing fruit by the end of September, when we
will register our first steps towards sustainable
accounts and wage bill. Putting our finances in
order was one of my major commitments on
being elected leader, and is a crucial precursor for
moving forward as a strong party in the future.

TEU: What is your message for those who
were shocked by the change of direction
taken by the Nationalist Party and also those
in the party who refused their support?
SB: My message is that I am here to listen and
to act where it is the right thing to do. I won’t
mince my words: we disappointed many
people and this is evident in the electoral
defeat we suffered. This has had an impact
in several areas. In the southern districts, for
instance, we have only elected one out of five
possible representatives in the second, third,
fourth and fifth districts. This has severely
weakened our ability to represent the public
in these areas. And these are areas where
we need to be strongest and most vigilant,
especially when considering the Labour
Government’s commitment to developing a
new power station in Delimara.
I have taken numerous measures to ensure
the Party reconnects with the electorate.
Firstly, I asked Francis Zammit Dimech
to lead a commission which has now
proposed important changes to the party
statute to make the party structures more
representative. At district level, we are
beefing up representation and joining
forces where possible, such as through
the introduction of a Committee for the
South led by Dr Stephen Spiteri. This way,
everyone will feel more welcome and much
better represented at party level.
TEU: Where do you see the party in five
years’ time?
SB: In five years’ time, I want to present the
Nationalist Party to the electorate as a truly
alternative government. I am aware of the
magnitude of this challenge, particularly
when considering the large defeat we suffered
in the last general election. This is why we
need all hands on deck, and why we must first
work towards rebuilding credibility, respect
and trust as a serious Opposition. I have
no doubt that we will rise to the occasion
by uniting as a party in Opposition and by
putting our house in order.
TEU

Editor’s Note
Simon Busuttil took office as Leader of the Opposition in May 2013
after having been elected Leader of the Nationalist Party. A lawyer
by profession, Dr Busuttil specialised in European studies and was at
the forefront of the campaign in favour of Malta’s membership in the
European Union. Simon Busuttil served as a Maltese Member of the
European Parliament between 2004 and 2013. In his role, Dr Busuttil led
the European People’s Party (EPP) in the Civil Liberties, Justice and Home
Affairs Committee. In June 2009, he was re-elected to the European
Parliament with a record 28% of the national vote (68,792 votes), the
highest percentage score in the European Union.In 2012, Simon Busuttil
was elected Deputy Leader of the Nationalist Party. In the 2013 election,
he was elected an MP of the Maltese Parliament.

August 2013 | THE ECONOMIC UPDATE

| 09

BANKING

Recent Developments
in Banking
Legislation
By Dr Stefan Grima

Recent months have seen two developments which are intended to
have an important effect on the banking sector.

The Payment Services Directive
– Version 2

payments are effected by card, such as when
one purchases airline tickets.

countercyclical capital buffer and capital
buffers for systemically important institutions.

On the 24 July 2013, the EU Commission
announced that it was adopting a legislative
package in the field of the EU payments
framework. This package proposes a revised
Payments Services Directive (the “PSD2”) and
a Regulation on Multilateral Interchange Fees
(MIFs). This directive is more extensive than its
predecessor, both in relation to the geographical
scope as well as the currencies covered.

It is being proposed that interchange fees for
consumer credit and debit card transactions
are charged on a per transaction basis at 0,3
and 0,2% respectively. Any net compensation
received by an issuing bank from a payment
card scheme will be treated as an interchange
fee. Commercial cards, ATM withdrawals,
and transactions with cards issued by thirdparty schemes (such as AMEX or Diners) are
however exempt from the cap.

CRD IV also makes changes to rules on
corporate governance, including remuneration,
and introduces standardised EU regulatory
reporting. These reporting requirements will
specify the information firms must report to
supervisors in areas such as own funds, large
exposures and financial information.

The PSD2 applies where both the payer’s
payment services provider and the payee’s
payment services provider are located within
the European Union or where only one of
the payment services providers is located
in the European Union. Thus the so-called
‘one-leg’ transactions are brought within the
scope of the PSD2.
The PSD2 focuses on increasing transparency
of conditions and information applying to
payment services in any currency and value
dating. The package proposes to eliminate the
present exemption in relation to payments
executed through mobile phones and other
IT devices and ATM withdrawals, and the
prohibition on non-payment service providers
to provide payment services.

What does this Directive mean
to consumers?
If the proposal goes through, consumers will
benefit from better protection against fraud,
possible abuses and payment incidents.
A typical scenario would be disputed or
incorrectly executed payment transactions.
In such instances, consumers may be
required to face only very limited losses – up
to a maximum of €50, rather than €150, as is
the case today.
The EU Commission is proposing the banning
of surcharging in respect of consumer debit/
credit cards. This refers to the practice whereby
some merchants impose an extra charge when
10 |

www.maltaeconomicupdate.com

The proposal also aims to regulate new types of
payment services, such as payment initiation
services and third party payment providers,
which offer consumers the possibility to
pay instantly for their internet bookings or
online shopping without the need for a credit
card. This creates a level playing field among
different payment services providers.

The CRD IV Package
The CRD IV package transposes the new
global standards on bank capital (commonly
known as the Basel III agreement), aimed at
tackling some of the vulnerabilities shown by
the banking institutions, in some countries,
during the international crisis into the EU
legal framework.
This package is made up of the Capital
Requirements Regulation and the Fourth
Capital Requirements Directive. It was
formally published in the Official Journal of
the EU on the 27 June 2013. Most of the rules
will become effective from 1 January 2014.
In addition to the implementation of the
Basel III rules, the CRD IV package proposes
sanctions for non-compliance with prudential
rules, corporate governance and remuneration.
The new rules include enhanced requirements
for quality and quantity of capital, a basis for
new liquidity and leverage requirements,
new rules for counterparty risk, and new
macro prudential standards including a

CRD IV is bringing about a paradigm shift in
capital and liquidity standards. In a context of
heightened concern from clients and investors
about bank resilience, banks perceived to be
safer as a result of strengthened capital and
liquidity ratios should attract more customers
whilst affording them greater peace of mind.

Moving forward
The two initiatives discussed have different
goals, however a common thread underlines
them. They are both inspired by a need to create
a level playing field, whilst affording customers
greater piece of mind and strengthening the
competitiveness of the EU banking sector.
TEU

All rights reserved | Copyrighted

Editor’s Note
Dr Stefan Grima obtained
his LL.D. degree from the
University of Malta in 2002, and
joined Bank of Valletta in 2004,
where he currently heads the
Legal Advice section, which is
responsible for granting legal
advice to the Bank’s branches
and
departments,
internal
lecturing, drafting/reviewing of
agreements with third parties
and bank standard forms/
procedures, and compilation of
reports in respect of EU/local
legislation affecting banking.

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INSURANCE

INVESTING
Through Funds
by Stuart Fairbairn

We are often asked whether it is better to invest directly in bonds and equities or to invest through a fund.
The answer is not always the same since it very much depends on individual circumstances, what you are
trying to achieve and your time horizon.
Investors who have the information, knowledge
and time to carry out in-depth individual
security analysis and are perhaps more
interested in short term gains notwithstanding
the increased risk are potentially better suited
to direct investments; whereas investors
wanting to spread their risk and are more
interested in longer term growth would
normally benefit from investing in funds.

What is a fund?
A fund is simply a collection of assets owned
by a group of investors and managed by a
professional investment company. They were
originally designed to offer retail clients access
to the types of professional fund management
services previously only afforded by the
extremely wealthy.
By investing in a fund you are pooling
your money with that of other investors,
generating numerous advantages, with of
course some disadvantages.

Why use a fund rather than invest
directly?
One of the basic rules to sensible investing
is to spread your risk and not have “all your
eggs in one basket”, commonly referred to as
diversification. This can take many forms from
diversifying across asset classes (cash, bonds,
equities, property and commodities), different
regions (globally, specific areas or countries)
and sectors (e.g. healthcare, financials,
consumer goods). By diversifying you reduce
the impact of the performance of any one asset
on your total portfolio.
As a direct investor you might find it difficult
to reach your optimum level of diversification,
unless you have a large amount of capital to
invest. As an investor in a fund you are provided
with the immediate benefit of diversification
since the fund will invest in typically between
50 and 200 securities depending on its focus
and strategy. Purely as a means of an example
12 |

www.maltaeconomicupdate.com

the Fidelity Euro Blue Chip Fund currently
invests in the shares of 62 different companies
throughout Europe, with its top holdings in
companies such as Siemens, Volkswagen,
Bayer, Sanofi, UBS and Allianz.
To compile a well-diversified investment
portfolio requires time to research companies,
markets, economic conditions and outlook. By
investing in a fund you are effectively hiring
the fund manager and his team to do all of
these things for you.

What are the other advantages?
Diversification is perhaps the main advantage
of investing in funds; however it is not the only
one. Other advantages include:
1. Professional Management: it can be difficult
and time consuming to pick and choose the
best individual shares and bonds.
2. Liquidity: money invested in listed funds is
generally liquid, which means you can buy
and sell your holdings in the fund usually
within 24 hours, although different funds
do have different dealing times.
3. Service: investment fund companies
generally have excellent representatives on
hand to provide you with any information
you require.
4. Convenience: it is easy to invest in a fund
and they often have low minimum entry
amounts. Many savings and investment
products offer access to funds at very low
entry levels.

What are the disadvantages?
Each fund will have its own set of charges and
expenses to pay for the fund manager and the
costs of distribution. The charges will obviously
detract from the overall return you receive and
so should be fully understood before investing.
In Malta non-prescribed funds (those with
less than 85% of their assets invested in Malta)
are subject to Withholding Tax on any capital
gains you make.

Are all funds risky?
In life there is no such thing as a risk free
investment. Even the perceived safe havens of
German Bunds and US Treasuries carry their
own risks in times of low interest rates and
inflation. All funds carry a level of investment
risk with some riskier than others. Most
funds are now rated on a scale from 1 to 7, so
whatever your personal risk tolerance level
there should be a fund suitable for you.

How to invest in a fund?
Investing in a fund is probably much easier than
you think. Most Investment Service License
holders, Banks and Insurance Companies are
able to offer easy access to funds, whether you
want to invest a lump sum or would like to save
on a regular basis.

What information should I check?
Before making any investment you should ensure
you are fully aware of where the fund invests, the
investment strategy and any associated risks
and charges. All of this information is easily
obtained through the Key Investor Information
Document and Fund Prospectus which is always
readily available on request.
TEU

Editor’s Note

Stuart Fairbairn is Chief Officer Business
Development at MSV Life plc and the
General Manager of Growth Investments
Ltd, a wholly owned subsidiary of MSV Life
plc.MSV Life p.l.c. is authorised by the Malta
Financial Services Authority (MFSA) to carry
on long term business under the Insurance
Business Act, 1998. Growth Investments Ltd
is authorised to conduct Investment Services
Business by the MFSA and is an enrolled
Tied Insurance Intermediary of MSV Life
p.l.c. under the Insurance Intermediaries Act,
2006. COM220813

Interested in investing in funds?
then take a look at this...

Special Offer
The MSV Investment Bond - Available
for Investments in Euro, Sterling and US
Dollar
Increased Fund Choice with up to 40 funds to
choose from
Reduced Minimum Investment Amount
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for more information contact MSV Life on freephone
8007 2220, send us an email on info@msvlife.com,
contact any of our Tied Insurance Intermediaries or
visit any branch of Bank of Valletta or APS Bank.

The value of investments may fall as well as rise and product charges may reduce the amount received on redemption. Investments should
be based on the full details contained in the Key Features Document and the Policy Document, available from our offices.
MSV Life p.l.c. is authorised by the Malta Financial Services Authority to carry on long term business under the Insurance Business Act,
1998. Bank of Valletta and APS Bank are enrolled as Tied Insurance Intermediaries of MSV Life p.l.c. COM 260313/4

BANKING

Analysing
FIMBank’s half-yearly
performance
By Martina Urso
Positive operating results for the six months
ended 30 June 2013 from all of FIMBank’s main
companies were overshadowed by the impact
of provisions on impaired assets during this
period. The FIMBank Group’s results, which
were announced recently, reveal that although
the Group’s operating income increased by 12%
during this period, from USD17.17 million to
USD19.32 million, a number of impairments
affected FIMBank’s bottom line significantly.
“In the current market and
political conditions, FIMBank’s
development of new banking and
structured trade finance business
will remain selective and focused
on our core competency”

The Group posted an after-tax loss of USD6.98
million at the end of June 2013, compared to
a profit of USD4.55 million registered during
the same period in 2012. Other key financial
indicators highlighted in the Group’s interim
results show Total Consolidated Assets
standing at USD1.12 billion, in line with the
USD1.13 billion reported at end 2012, while
Total Consolidated Liabilities reached the
USD1 billion mark, thus remaining at the same
level as last year. Net Interest Income increased
by 33% to USD7.37 million.
Liquidity was healthy with the relevant ratios
consistently above the required regulatory
threshold, while both the Basle II Capital
Adequacy Ratio, at 15.04%, and a Tier 1
Capital Ratio of 11.44% at end June 2013
remained robust and comfortably above the
regulatory minimums.
Commenting on the Group’s performance
during the first half of 2013, FIMBank
President Margrith Lutschg-Emmenegger says
that, “In the prevailing challenging operating
environment, we adopted a cautious approach
14 |

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towards developing new relationships. In
the current market and political conditions,
FIMBank’s development of new banking and
structured trade finance business will remain
selective and focused on our core competency,
cross-border trade finance. Having said that, our
model is diversified and dynamic, and we have
the capability to react quickly to developments
in the markets in which we operate.””.
On the subject of the impaired assets,
the FIMBank President explains that the
Board’s decision was to adopt a very prudent
approach, and consequently the Bank took
conservative provisions on these impaired
assets. She adds that legal remedies were in
process for their recovery.
Lutschg-Emmenegger expresses confidence
when talking about the Bank’s new reference
shareholders: “We are experiencing tangible
benefits as a result of our forming part of
the KIPCO group. This new institutional
shareholding will result in access to more
favourable funding, increase in equity,
intra-group technology transfers and the
development of new business opportunities,
which will undoubtedly result in more
profitability.” On the other hand, FIMBank
also has much to contribute towards KIPCO:
“FIMBank is considered as the trade finance
centre of excellence within the KIPCO
Group, and we are determined to find suitable
opportunities to reap the benefits of leveraging
Group synergy”.
With regard to short-term prospects,
the FIMBank President states that “Our
immediate objective is to ensure that our
untiring efforts to drive value during the
second six months of the year are reflected
in the bottom line. We are very confident
that with our business model and the new
institutional shareholder on board, we can
achieve the goals we have set for ourselves”.
TEU

FIMBank is an international trade finance
specialist with an established reputation as
a dynamic and customer-driven provider
of trade finance solutions. Through our
strong correspondent banking network
and offices located across the globe, the
Bank offers a unique environment in which
trade finance opportunities are identified,
innovatively structured and executed.

Kenneth Farrugia, Chief Officer - Fund Services at Bank of Valletta plc responsible for Valletta Fund
Management Limited and Valletta Fund Services Limited maintains that the accessibility of the Malta
Financial Services Authority (“MFSA”) coupled with Malta’s comprehensive legal and regulatory
framework, are the key success factors of the local funds industry. Undaunted by the growing challenges
ahead, Mr Farrugia gave this frank interview to The Economic Update.
TEU: Malta’s Funds industry and the
financial sector have continued to register
strong growth as the statistics clearly show.
What have been the key factors of this
success?
KF: In 1994, Malta paved the way for the
development of the financial services
industry which includes amongst others
the investment funds sector by enacting
through Parliament a comprehensive legal
and regulatory framework which overhauled
Malta’s positioning from an offshore financial
centre to an onshore one. As a result of
these developments, the funds sector was
one of the sectors within the industry that
has experienced significant growth. To put
this growth in context, whilst in 1995, there
was only 1 collective investment scheme
consisting of two sub-funds, the number has
increased to more than 570 funds today.
As a leader in Maltese banking, Bank of Valletta
p.l.c. was the first banking institution in Malta
to take up the opportunities that were created
as a result of the 1994 legislation by setting up
Valletta Fund Management Limited (VFM)
together with Rothschild Asset Management.
Today, VFM is jointly owned by BOV and
Insight Investment Management Limited,
one of UK’s largest asset managers and a fully
owned subsidiary of the Bank of New York
Mellon Corporation. VFM has over the years
strengthened its position in the market and
offers investors a comprehensive range of
domestic and international investment funds
in turn investing in the main asset classes in all
major currencies and across different markets.
16 |

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The growth enjoyed by this sector, which
was in the very early years driven by the
domestic financial services providers in
turn attracted the attention of a number
of international asset managers such as
Fidelity, Hendersons, Schroders, Thames
River, Lloyds and other fund managers that
distribute their funds in Malta.
“Albeit Malta is the smallest EU
member state, we should leverage
this reality by being fast and nimble
when opportunities are presented
by the market.”

EU Membership, in my view was the catalyst
that brought about a strong paradigm shift;
one where the industry was primarily led by
the domestic market to a the new reality of
an industry driven by international growth
as a result of a fast growing number of
international asset management organisations
setting up Funds in Malta which are in their
great majority promoted overseas. As a
result, the dependency on the growth of this
sector which was at the outset driven by the
investment products that were periodically
launched by Maltese asset managers is
today driven by the lincesing and launch of
investment funds managed by international
asset managers some of which have also
set up their operation in Malta. Equally
EU membership has also enabled Malta to
position itself as a fund domicile for UCITS
funds which are regulated under the UCITS
Directive and which in turn may be promoted
cross border into Europe.

Here again, recognising the developments
in this field, in 2006, Bank of Valletta as a
leading organisation in Malta has set up
Valletta Fund Services (VFS) to provide fund
administration services to the international
asset managers setting up funds in Malta.
Today VFS is administering over Euro 2.6
billion across 134 investment funds managed
by asset managers based in various EU and
non EU countries.
In my opinion, MFSA coupled with the
support of the various stakeholders has been
pivotal in the process. Over the years, in
fact since 1995, the MFSA has continually
updated Malta’s regulatory and legal
framework to ensure that this is aligned to
that in the rest of the Europe. In actual fact,
when Malta came to join the EU, its legal
and regulatory framework was found to be
the most aligned to that in the EU when
compared to the other countries that were
set to become EU member states.
Other equally important critical success
factors include the presence of a robust
operational infrastructure to include the
presence of professional accounting and
legal firms, competitively priced services
and above all the presence of a highly
skilled workforce.
As a result, Malta is very well positioned
and has a string value proposition when
compared with other EU member states.
There are of course other factors which
are given a due weighting in the decision
making process to set up a financial services
business in a jurisdiction. These include

FUND IT
MANAGEMENT
EDUCATION

amongst others the presence of a sound
macro and micro economic environment,
level of accessibility to the country and
equally important the country’s lifestyle.
TEU: VFM was the first asset management
organisation that was set up in Malta
to manage and promote Collective
Investment Schemes. What are the main
reasons for VFM’s success over the past
18 years and where do you see VFM in the
next couple of years?
KF: VFM commenced its operations from
very humble beginnings operating in a market
which was virtually new for Malta. Today, the
Company manages over €723 million funds
under management (as at 31 July 2013) and
services a client base of over 30,000 investors.
Over the years, VFM has widened its product
range to meet the evolving and changing
needs of investors. The Company has five
key product categories centering around the
various investment needs of investors. These
consist of liquidity funds primarily investing in
money market instruments and bank deposits,
income driven investments investing in the
bond markets, income and growth investments
consisting of balanced portfolios of equities
and bonds, growth funds investing in shares of
domestic and international companies as well
as absolute return funds category which invest
in various asset classes with no particular
skewness to any one class.
Clearly, one of the difficult factors to manage
in this business is the performance of the
capital markets which is conditioned by
macro economic and international political
developments. In fact, the crisis that
gripped the world’s capital markets in 2008
and for a number of years thereafter has

had a negative impact on investments in
general. This highlights the importance of
investment diversification and the need to
seek professional investment advice where
and when needed. Within the context of
the state of flux of capital markets, investing
on a monthly investment basis is in my
view a highly interesting way to build up
an investment portfolio in capital markets.
Monthly investment in VFM’s funds is a
highly flexible investment method as there are
no lock in periods and investments are easily
accessible commencing from a low minimum
investment of Euro 50 per month.
“Since its set-up in 1995, VFM has
widened its the range of investment
solutions to cater for the key five
investment objectives of investors”

Going forward, VFM is aiming to ensure that
it investors may access the various investment
opportunities in the world’s capital markets
through the provision of easily accessible
professionally managed and cost competitive
investment solutions. Investor education has
always featured highly in VFM’s plans and
over the years the Company has invested
in various initiatives to include investor
education sessions as well as radio and TV
programs aiming to strengthen the knowledge
of investors on investments in capital markets.
Furthermore, we are currently reviewing our
product suite to ensure that these address the
changing investor requirements.
Last but not least, VFM is actively following up on
the much spoken and debated pension reform as
in my view this is an equally important milestone
for Malta’s asset management industry.
TEU

Editor’s Note
Kenneth Farrugia joined Bank
of Valletta plc, Malta’s largest
banking group, in 1985 and
over the years has occupied
various positions within the
Bank. Kenneth currently holds
the post of Chief Officer
Fund Services and sits on the
Executive Committee of the
Group. He is responsible of
the Bank’s two subsidiaries;
Valletta
Fund
Services
Limited, the Bank’s fund
servicing arm, and Valletta
Fund Management Limited a
joint venture between Bank
of Valletta plc and Insight
Investment Management, a
fully owned subsidiary of Bank
of New York Mellon. Kenneth
is also the Chairman of
FinanceMalta, Malta’s national
promotional body for financial
services, and also serves as
Chairman of the Malta Funds
Industry Association. He is
also the Chairman of Malita
Investments plc, which is listed
on the Malta Stock Exchange.
August 2013 | THE ECONOMIC UPDATE

| 17

ASSURENCE AND TAX
EVENTS

THE BOV BOAT SHOW
One of the most sought after events to date
in Malta’s maritime calendar is back for four
days this September for the 7th edition of the
BOV Boat Show. This established show in
Malta’s calendar of events will feature over 70
exhibitors from around the world, including
the most prestigious names in the boating
and yachting industry. Since the annual
maritime exhibition started in 2007, it has
kept a steady growth making it the country’s
biggest boating event, dazzling and delighting
over 20,000 unique visitors annually. This
year, the boat show provides four actionpacked days of fun and excitement for all
ages. The Economic Update will be featuring a
special supplement full of interesting articles,
interviews and also the latest developments
in the marine industry, a good way to stay
informed about all aspects of boating.
Speaking at the launch of the BOV Valletta
Boat Show, the Minister for Transport and
Infrastructure, Joseph Mizzi said that he is
truly honoured to launch the boat show being
held at Cottonera, the undisputed cradle
of maritime Malta, which abounds with
traditions dating back over many centuries.
Mr Mizzi added that this Government is
committed to ensure that the maritime
sector continues to grow and flourish and
has pledged to create a maritime hub of
excellence in the Mediterranean.
John Formosa, Director of Circle Events said
that, ; “The BOV Valletta Boat Show is fast
establishing itself as one of the leading boat
shows in the heart of the Mediterranean”,

2013
By George Carol

confirming that his company has embarked
on an ambitious marketing project overseas
in order to attract foreign exhibitors from
across the Mediterranean and a wider
general public. A multilingual website, www.
vallettaboatshow.com, has been set up to
promote the boat show overseas. For the first
time ever, a number of exhibitors from Italy
will be taking part this year.
Charles Borg, Bank of Valletta CEO
congratulated Circle Events for organising yet
another edition of the BOV Valletta Boat Show.
“This event has become synonymous with the
yachting industry, not only in Malta, but also in
international circles. Bank of Valletta is proud to
support this event which generates such a high
level of interest in the sector, which is growing
both for leisure and as sport.”
From the latest in powerboats, sailboats and
engines to cutting-edge marine electronics
and accessories, the best in nautical gifts,
services and apparel. The four-day event is

your once-a-year chance
for the general public to
compare makes, models,
and gear up with the
latest accessories all at
one time.

BOAT SHOW
MALTA 2013

The public can step inside a number of
sailing boats, power boats and stands. Large
vessels from the Armed Forces of Malta and
a number of NGOs, private charters and
other sea vessels will also be present at the
BOV Valletta Boat Show. Beyond the boats
and booths, special events, attractions and
activities celebrate the boating lifestyle and
offer entertainment for everyone.
A special 24 page pull-and-keep-supplement
is being published in the September edition
of The Economic Update. The special pullout will provide in-depth information for
all exhibitors, boat vendors and buyers,
and boating enthusiasts. We cover topics
ranging from in-depth boat tests to how to
complete maintenance and repairs on your
boat. We also highlight tow tests on the
latest tow vehicles. The special feature is well
researched, written, edited and photographed
to be the quintessential authority in trailer
able boats, marine propulsion, accessory
installations and use, maintenance and repair,
tow vehicles, boat tailoring, seamanship,
water sports and cruising.
For added impact, advertisers can contact:
Margaret Brincat – Mob: 9940 6743;
margaret@networkpublications.com.mt
TEU

“ASEAN countries have the
potential to offer the low-cost
manufacturing and high output
seen in China 30 years ago.”
The potential of many Southeast Asian
countries has been overshadowed by China’s
role as Asia’s economic powerhouse. Europe
is focused on China but the vast trade
opportunities with Southeast Asia have been
largely overlooked.
The ten members of the Association of South
East Asian nations (ASEAN) account for
600m people with a combined GDP of USD2.1
trillion, solid growth, low manufacturing costs
and a rising middle class.
Southeast Asia enjoys healthy trade volumes
with China, while regional trade has also
grown. This has been helped by ASEAN,
which was formed in 1967 to accelerate
economic growth and develop free-trade
agreements between member countries. The
ASEAN Economic Community, which comes
into being at the end of 2015, should further
boost trade by introducing zero tariffs on all
goods between Brunei, Cambodia, Indonesia,
Laos, Malaysia, Myanmar, The Philippines,
Singapore, Thailand and Vietnam
18 |

www.maltaeconomicupdate.com

EXCLUSIVE: EU/ASIA
IT EDUCATION
RELATIONS

Europe though has failed to fully capitalise on
business opportunities in the region. There
has been some progress: the EU recently
concluded a free trade deal with Singapore and
is currently in negotiation with Thailand.
Although Singapore and Thailand have wellestablished business ties with Europe, other
members of ASEAN such as Vietnam and
Malaysia have yet to emulate their success.
In many instances Western companies
have identified China as a preferred option
when setting up manufacturing facilities.
But this is beginning to change as Southeast
Asian markets become more accessible and
increasingly competitive on costs.
“The
rising
spending
power
of ASEAN countries and the
strengthening of demand in their
domestic markets could help to
unlock huge growth potential”

China is shifting away from low-value,
labour-intensive industries such as textiles
to higher value-added manufacturing such
as industrial machinery and information
and communications technology. This has
created opportunities for China’s neighbours,
especially Indonesia and Vietnam, with their
large working populations and lower wage
costs, to fill the void. ASEAN has embraced
the opportunity to create the sort of lowcost, high-volume manufacturing that ignited
China’s economic boom 30 years ago.
Demographics also play a key role in
ASEAN’s economic growth prospects. With
growing disposable incomes and increased
urbanisation, ASEAN trade is expected to
grow sharply over the next decade. Indonesia
alone has a population of 242 million, of which
165 million are people of working age. This is
attractive for multinational companies who
want low-cost labour and a dynamic domestic
market with a rising urban middle class.

Whereas Vietnam is now a leading
manufacturer of footwear, the Philippines
is strong on outsourcing, particularly in IT
services, while Malaysia and Indonesia offer
foodstuffs , and natural resources.
Healthy trade with China is important to
ASEAN countries (ASEAN trade with China
grew from USD 7.4 billion in 1990 to over
USD 290 billion in 2011) but intra-ASEAN
trade is also important and on the rise. Take
Vietnam as an example, intra-regional trade is
forecast to grow by more than 15 per cent a
year to 2020 with Indonesia and Malaysia fastgrowing export partners.
ASEAN’s potential is attracting
attention from some of the
world’s largest economies notably
China and the US. The headsof-government ASEAN summit,
which was held once every five
years, is now every year. The
summit, designed to increase
cooperation between nations, has
increasingly attracted attendees
from non-member countries.
Senior representatives from China
were present at the 2012 summit
in Phnom Penh, as was the US
President Barack Obama

How Europe can unlock ASEAN
potential

The rising spending power of ASEAN
countries and the strengthening of demand
in their domestic markets could help to
unlock huge growth potential. However
there is a risk that growth in inter-ASEAN
trade could stall unless it can mobilise the
finance and expertise needed to tackle serious
infrastructure problems.

Vietnam has a population of 89 million but
should reach the 100 million mark by the mid2020s, with the average age in the country just
27. Vietnam has been able to grow its textiles
sector rapidly in recent years, helped by its
competitive wages: clothing and footwear
manufacturing is forecast to make up around
a fifth of the growth in Vietnam’s exports from
2013 to 2015, according to the latest report by
HSBC Global Connections. The workforce
is young, well-educated, industrious and keen
for economic development.

For example there are no decent rail links
between Thailand and Vietnam or viable road
routes between Burma and Thailand. We
estimate that Asia needs USD 11 trillion (China
accounts for a large proportion of this) to fund
crucial infrastructure development including
upgrading roads and railways to handle more
goods. ASEAN member nations are struggling
to fund such major projects themselves and
this is where finance from Europe could play
a crucial role. The Philippines, Indonesia,
Vietnam and Thailand have tried to promote

public-private partnerships but the current
rate of investment is unlikely to be sufficient.
The potential is there to step this up.
The onus is now on Europe and ASEAN
to increase dialogue and make the most
of a significant, long-term and mutually
beneficial business opportunity.
TEU

All rights reserved | Copyrighted

Editor’s Note
Noel Quinn is Group General
Manager Regional Head of
Commercial Banking Asia
Pacific for the HSBC Group,
and has responsibility for the
Group’s relationship with all
middle market corporates and
small and medium enterprises
in Asia-Pacific. Before taking
up his current role in April
2011, Mr Quinn was Group
General Manager and Head of
Commercial Banking in UK and
was instrumental in leading
this business through one of
the most difficult economic
periods in recent history.
Mr Quinn joined Forward
Trust Group, a subsidiary of
Midland Bank, in 1987. He
led HSBC’s acquisitions of
Swan National Motor Finance
and Eversholt Leasing Ltd,
becoming General Manager
of each business in turn. He
has since taken up postings
including Head of Specialised
and
Equity
Finance
at
HSBC, Group Director of
Strategy & Development at
HSBC
Insurance
Services
North America and Head of
Commercial Finance Europe.
Mr Quinn qualified as an
accountant
with
Grant
Thornton in 1987. He also
studied at Kellogg Graduate
School of Management in
Chicago and the Royal College
of Defence Studies in London.
August 2013 | THE ECONOMIC UPDATE

| 19

WOMAN ON BOARD

INTERNATIONAL
SPEAKER FOR WOMEN
ON BOARD EVENT
MADI SHARMA SAYS
MALTA'S MEN ARE
KEEPING MALTA
BOTTOM OF THE
EUROPEAN TABLE
By Specail Correspondent
Entrepreneur and activist Madi Sharma is the keynote speaker
for the “Women on Board” Conference at Europa House on
September 13, organized by the National Council of Women
and the European Parliament Information Office in association
with the Institute of Directors Malta Branch and the Malta
Institute for Management.

Madi Sharma who will be in Malta on September 13 to give the keynote
address at the Women on Board event at Europe House in Valletta says
that Malta’s men have put Malta squarely at the bottom of the European
table when it comes to gender equality in the boardroom. Madi Sharma
has written many opinions for the European Economic and Social
Committee on issues surrounding women and is an international
speaker and freelance journalist on the subject. She is an entrepreneur
with private sector businesses and NGOs in different parts of the world.
Mrs. Sharma says, “The business case clearly shows that Women on
Boards bring a higher return on investment and an increased share
price. Hence, this is not a gender debate, nor about quotas or tokenism
but this is about good economics with good transparent business
practice”. Madi Sharma is UK member of the European Economic and
Social Committee and will be speaking at Europe House in Valletta to
explain why gender equality in Malta is a prerequisite to the country’s
success and growth.
Across Europe there is increasing debate on gender equity in decision
making, much of this stimulated by the forthcoming Directive from the
European Commission Vice President Vivianne Redding on Women
on Boards. However, before starting the debate in depth in Malta it is
essential to remove the myths and rumours that have been circulating
the debating tables.
The first major misconception is that the new Directive, and any other
moves for equality in decision- making are based on quotas. The word
quota does not appear anywhere in the proposed EU Directive, which will
be based on ‘merit and preference’. This means that only in the situation
of a man and woman being of equal qualifications, applying for a position
as a non-executive director on a publically listed company board, will the
female receive preference. In all other cases, the most highly qualified of
the two will receive the position. The Directive only sets out a 40% targeted
objective and mechanisms to ensure transparency of recruitment in a bid
to remove current discrimination against qualified women.
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“The other big myth,” says Mrs. Sharma, “is that if we give the ‘natural
cycle’ time, women will automatically receive equality. This debate is
sadly now centuries old and we see little change in the equality stakes,
despite the fact that women are now more highly qualified than men.
The gender pay gap, pensions gap and access to rights are all in favour
of the male gender. Most distressing, is that many reproductive rights of
women are still decided upon by men. European statistics and complex
analysis clearly shows that left to their own devices, we would be into
the next century before the natural cycle took its course.”
And why is this so important to Malta? Because Malta as one of the
28 member states of the European Union, which has been built on a
foundation of equality and human rights, Malta sits at the bottom of
the EU table for gender balance.
The final myth is that this is a ‘woman’s issue’. Mr. Sharma says, “Actually,
it’s quite the opposite. We will not have any change unless we get men
around the table to participate in the debate. This is not a debate about
women verses men. This is not a request for preferential treatment or
privileges. This is about a need for women and men to be treated equally
whilst admitting we are different. This is about the social and economic
benefits, and ultimately environmental and cultural benefits, which
result from increased equality.”
Women on Board is being organised by the National Council for
Women together with the European Parliament Information Office
and in association with the Institute of Directors Malta Branch and the
Malta Institute for Management and will be held at Europe House in
Valletta on September 13.
For further information about the ‘Women on Board’ Conference
with Malta’s MEP’s please call 21 23 50 75 or visit www.europarlmt.
eu or visit the facebook event page at https://www.facebook.com/#!/
events/678022468893588/
TEU

MALTA:
a cool climate that’s
hot on the
quality-of-life
index
by Nigel Leyson
It’s official - Malta has the best climate on earth.
Malta was one of two countries that were tied for first place with
the title of Best Climate, according to the Quality of Life Index
issued by the International Living magazine last year. Sharing top
honours was Zimbabwe.
Yet a Mediterranean climate (over five hours of sunshine a day) isn’t all
that Malta has to offer. Malta’s many other virtues in the 9 categories
of the IL index combined to earn it 3rd place overall in the Index,
pipped to the post by the U.S. and New Zealand. That ranking speaks
volumes for the size of Malta’s quality offering relative to the island’s
land mass of just 122 square miles.
How about a stable government, economy and a modern health service?
These factors carry a lot of pull for wealthy English and Europeans looking
to get away from their frosty climes. In fact, frost and snow are unknown
in Malta with shirt sleeve order and temperatures of 70 degrees Fahrenheit
(21 degrees C) in November. Flights to many European capitals are just 3
hours away. Crime is low, education levels high, the locals hospitable and
English-speaking with 48 English language schools. As a result, homes
and apartments here have now attracted the international set. So has the
historic harbours, 5-star hotels, restaurants and summer nightlife.
But overseas domestic buyers aren’t the only ones to recognise the
reputation of the island’s property potential. Malta’s success in

attracting City hedge fund managers to redomicile to the island as a
result of a well regulated and cost-competitive jurisdiction has spurred
more demand for high quality homes in the sun.
Back in 2000, it wasn’t like this. Sure, the island had a loyal following of
repeat overseas visitors but nothing that one could call gold standard.
Despite its geographic location and abundance of sun and sea, Malta’s
lifestyle as an up-market destination had little relevance for the aspiring
overseas home buyer. That was until Portomaso was built.
George Fenech, the Tumas Group’s Chairman, pioneered the lifestyle
concept in Malta. He had a multi million Euro dream. He wanted to
enhance the quality of life for those buyers who could make the right
investment decision. His vision of the Portomaso marina would bring
Malta to the attention of the international property market with
an Oscar of the property world - Gold Award in the Best Marina
Development Category in the 2005 International Property Awards.
As a result, Portomaso was acclaimed the most exclusive address in
Malta and became home to the well-heeled, international celebrities
and footballers. Those that bought in 2000 have seen the value of their
property rise by over 300%. Rental income has also risen, in many cases
giving a return of up to 06%.
Out of the Portomaso mould have been cast two more luxury developments
in the north and south of the island, both a stone’s throw from the Med.
They are already reaching completion, thanks to Tumas Developments,
the Group’s property arm. As both properties
websites rather prosaically state, these two new
residencies ‘offer lifestyle choices of the highest
standards’. More to the point, poured into these
two moulds are all the expectations of luxury,
safety, tranquility and, you’ve guessed it, lifestyle.
Tas Sellum and Ta’ Monita have been designed
to suit most pockets. Tas-Sellum offers a onebedroom apartment of 97 square meters starting
at €199,000 going up to a million plus for larger
apartments whilst Ta’ Monita offers apartments
starting at €98,000 going up to a million plus.
Both residences are termed Specially Designated
Area, allowing the buyer to purchase more than
one property in Malta and Gozo for private use
or for business.
TEU

Contact details:

True recognition by the international property market. A whole clutch of awards for Best
Marina Development was won by Portomaso in 1999, 2000, 2001 and Gold in 2005.

Foreword by George Fenech,
Chairman Tumas Group
As the promoters and developers of Portomaso
Business Tower it gives me immense pleasure
to welcome you all to this special 24-page pullout-and-keep supplement of The Economic
Update featuring Portomaso Business Tower.
Through this very successful, international
corporate business centre Tumas Group has
been able to reach out to a wide spectrum of
people from across the globe, this also lent itself
to the Group playing its role in the development
of Maltaâ&#x20AC;&#x2122;s economy being one of the foremost
investors in local commercial sectors.
This special feature pays tribute to all owners
and tenants at Portomaso Business Tower
and explores why Portomaso Business Tower
has achieved global brand recognition as a
premium business centre where customers
find the centre an optimal business venue as
it remains the leading business address for
foreign banks, brokers, legal and compliance
firms, financial companies, global investors,
logistics, iGaming companies and corporate
offices in general.
As we move ahead into what we auger to be
better economic times, I would like to thank
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everyone involved with Portomaso Business
Tower for capping a productive period for
the industry. The recent past is a witness to
Portomaso taking proud steps forward on
the growth path, bringing the Tower one step
closer to achieving its ultimate goal to become
the most preferred and the most cost-effective
business hub in Malta.
The unprecedented increase in new company
registrations and licence renewals, and the
various industry awards and recognition,
reinforces the confidence that our business
model offers. Our business centre at
Portomaso allows our clients to broaden the
scope of their global operations. The aim of
this commercial centre is to provide marketing
and sales, clients support and administrative
services at locations convenient for existing
and potential clients who are in Malta but
may not be based on the island itself. Many
of the services available on our Business
Tower offer a holistic approach to businesses
creation within the local scene, yet with a
wider international outlook. The creation of
a unique waterfront, office, residential and
leisure set-up complements all this.

We have developed an array of first-class business
offices within the Tower, which offer a wide range
of business solutions to meet the evolving and
ever-growing business demands of clients. Our
offices and facilities offer turn-key solutions and
provide an instant and comprehensive business
environment, with flexible terms and minimal
additional investment, enabling companies to
establish a powerful business presence in Malta
and beyond.
The fact that this kind of success was achieved
in an extremely challenging economic
environment is all the more commendable.
It is no secret that we want to be the best in
our business and we are confident in achieving
this, with your support, thus playing a pivotal
role in contributing to our economic growth
and that of Portomaso Business Tower clients
as well as Malta as a whole.
In this, I look forward to your continued
patronage and support so that we shall grow
concurrently to achieve further success in the
years to come.
George Fenech Chairman
Tumas Group

IT EDUCATION
SPECIAL
FEATURE

PORTOMASO BUSINESS TOWERS & BEYOND

EDITOR'S
CHOICE
by Margaret Brincat

THE NEW INSTRUMENTO N° UNO XL
Contemporary baroque expressed in the
masculine mode
This spring, de GRISOGONO is unveiling
a timepiece rife with superlatives. The new
INSTRUMENTO N° UNO XL dual-time,
passionately created by Fawaz Gruosi,
embodies
the
brand’s
emblematic
contemporary baroque style, appearing for the
first time in a model exclusively dedicated to
men. Superbly legible and easy to use, it features
more generous dimensions and an exotic touch
through the materials composing it: white
or pink gold, black or brown titanium, and
precious Macassar ebony wood.
The new INSTRUMENTO N° UNO XL radiates
sophisticated exuberance. This original and
eminently modern timepiece displays distinctly
larger dimensions with a 30mm x 30mm dial,
as well as a case adjusted to this new developed
movement, Calibre DF 11-96, is user-friendly
and powers these exceptional timepieces. It
drives a dual time-zone display that will please
travellers and is adjustable via the crown.
Coated with a “blackened gold” treatment
and visible through the sapphire caseback, it
is adorned with the famous Côtes de Genève
motif. Resistance to 50 metres is ensured by
systematic testing at 5 atm. de GRISOGONO
confirms its tradition of excellence through this
watch designed specifically for men. The two
models available are distinguished by a complex
structure combined with noble materials.
One is clad in white gold, black PVD-coated
titanium, and dark ebony on the dial.
INSTRUMENTO GRANDE CHRONO 
THE REBIRTH OF A MANIFEST SUCCESS.
Acclaimed at its launch, it’s back today in a
striking updated version featuring a series of
unusually arrayed functions.
With its oversized case and calendar aperture
plus the galuchat strap that matched the dial’s
bright and cheerful colours, the Instrumento
Grande was welcomed with friendly, even
enthusiastic applause.
Five years later, here it is again. This time in a
Chrono version — but what a Chrono! While
the Instrumento Grande’s case is as grand as
ever, its 2010 dial displays a full measure of
05 |

www.maltaeconomicupdate.com

GRANDE
CHRONO 01

N° UNO
XL
the uninhibited creativity that makes any de
Grisogono watch stand out in the crowd. The
retrograding date calendar arrayed in twin arcs
gives the Instrumento Grande Chrono’s dial
its vibrant personality. Since no mechanical
chronograph is thinkable without totalisers, this
chronograph’s subdials give classic horological
tradition a little jolt. The 30-minute version is
white, square and situated at 9 o’clock while
the 12-hour subdial is larger, round, black
and positioned at 6 o’clock. Together with the
black-and-white centre seconds hand, they
respond to push pieces located on either side
of the setting crown.

Fashioned in 18 ct pink 5N gold, the Instrumento
Grande Chrono is water-resistant to 50 m (~
100 feet). Featuring smoothly rounded bracelet
links, its generously proportioned case houses
a self-winding mechanical movement that
provides 42 hours of reserve power. Revealing
by design, the case allows connoisseurs
of mechanical wizardry to observe the
movement’s steady beat through a sidelight on
the 9-o’clock side of the case. The to-and-fro
movement of the rotor, inscribed with the de
Grisogono crest, is visible through the clear
sapphire porthole of the screw-secured case
back – exactly as on the 2005 model, the first
watch ever to feature a transparent side panel.
Black or brown depending on the dial colour, an
alligator strap with pink gold deployment clasp
retains the Instrumento Grande Chrono and its
unforgettable face securely on the wrist.

GET AWAY FROM
THE EVERYDAY.
A superbly luxurious hotel situated on a sun drenched gem
in the Mediterranean and accessible from all major European airports.
At Hilton Malta experience exquisite views, leisure facilities
and the finest restaurants all steeped in this amazing setting.
We look forward to hosting you and we’re sure you’ll definitely be back.
For information please call us on 00356 21 383 383,
reservations.malta@hilton.com or visit hiltonmaltahotel.com
S TAY H i lTO n . G O E V E R Y W H E R E .

BACKGROUND
De Fort design wear is a marque which
represents and operates the Ralph Lauren
fashion outlet located at Malta’s luxury
residential development and i Gaming hub at
Portomaso Busines Centre. It shares the areas
with Hilton Hotel Malta and the Portomaso
brand outlets, including the Casino
The Ralph Lauren boutique just got a whole
lot better with floor sections showcasing ladies
blouses, menswear, and a variety of clothing
apparel to suit everyone’s tastes. The high point
of the collection are the men’s coloured t-shirts
and women’s garments, which have just the
right proportions of signature Ralph Lauren
prep and the designer’s seasonal inspiration. But
then this is Portomaso and exciting retail spaces
are nothing less than you might expect.
De Fort brings over the summer Ralph Lauren
2013 collection with no exception and the colours
are striking more than they have been in past
years, taking customers completely by surprise,
with the astonishing yet practical style. And what’s
more – De Fort are extending their summer sale
till beginning of October.
The retail outlet has all the ingredients increasingly
emblematic of the designer’s retail network. The
store is housed inside a neatly designed built
structure with an imposing limestone facade, large
square windows and balconies; the residential07 |

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What began 40 years ago with a collection of ties has
grown into an entire world, redefining American flair and
panache. Ralph Lauren has always stood for providing
quality products, creating worlds and inviting people to take
part in their dream. This world-famous brand has been the
innovator of lifestyle advertisements that tell a story and is
sold exclusively at De Fort outlet.
like interior has several smaller sections and there
is a noticeable spotlight on women’s apparel and
accessories. This outlet is a glamorous setting to
showcase the breadth of Ralph Lauren Summer/
Autumn 2103 collections in an exquisitely artdirected opulence.
“We cater for one of the most discerning, fashion
savvy, affluent, fashion-perceptive consumers,”
says Maria, Retail Shop Manager. The economy
hasn’t put a damper on the store, and sales for
this year have far exceeded our expectations as
we sold 10% more than we did last year,” confirms
Maria, who manages the De Fort’ Ralph Lauren
business. The men’s line focuses on a more casual
assortment. “Ralph really felt bullish about the
men’s opportunity and the demand,” she adds, “we
made the primary investment in men’s but the
assortment in men’s really speaks to the guy who
is here, short of dressing him for business. These
are clothes to wear on the weekend or outdoors,
with sweaters and great sport shirts.”
This is the perfect environment for the smart
corporate executive to ponder which one of
Ralph’s elegant leather iPad covers would best
fit his tablet. My bet is that he will settle on the
delectably elegant wallet or fine belts. There are
no big seasons for selling with De Fort. But maybe
that’s the idea. Because De Fort is such a master at
retail and pre-collections are all about selling, what
does it matter whether the press sees it? What
matters is that customers want to buy it.

This year marks the 10th anniversary of Ralph
Lauren. The American classics label established
its 21st-century credentials in Malta without
much fanfare. The GM responds quickly to
the needs of the store as a whole and shares
successes with staff. He cares about the sales
staff and addresses concerns quickly. There is a
lot of traffic through the store, which means it
generally makes its goals.
“We cater for one of the most
discerning, fashion savvy, affluent,
fashion-perceptive consumers”

Recovery after closing is well planned as are floor
sets. The GM treats everyone as a highly valued
member of the team. Ralph Lauren offers a world
of luxury and comfort in men’s and women’s
clothing. The mix at the store could bring a boost
to the overall area, which hasn’t been immune to
the recession. “I think any good retailers always
help everyone,” said Maria. She maintains that,
“Ralph’s Lauren store is wonderful advertising in
brand awareness. We offer an excellent customer
service and an exceptional after-sales service, as
well as strive to grant an unrivalled customer
satisfaction with every visit,” concludes Maria.
So get enthused and discover the season’s latest
clothing, home fashions and gifts at Ralph
Lauren luxury boutique in Portomaso.
TEU

All rights reserved | Copyrighted

n
m
u
t
u
A 2013

SPECIAL FEATURE

PORTOMASO BUSINESS TOWERS & BEYOND

International Business
By E. Cussay

Geert Hofstede claims that people tend to share collective national character which identifies their cultural
mental programming. Such programming, in turn, predetermines our individual beliefs, values, assumptions,
approaches, expectations, attitudes and behaviours. Hence, Hofstede’s cultural dimensions vary within
national cultures and are also a subject to ratings for world countries (Gong et al., 2007).
Power distance is the cultural dimension which
determines an extent to which members of
society accept and perceive the power. At that
different societies have different perceptions
of status. In particular, corporations apply
the system of hierarchy and therefore power
sharing is unequal due to boss-subordinate
relationships. In other words, power inequality
largely predetermines our social status. At
“At that, large power distance
is featured by overwhelming
centralisation and less transparent
or/and participative decisionmaking”

that, the power is globally distributed between
the leaders and the followers (Hofstede, 1980;
Hofstede, 1991). At that, in accordance with
the Hofstede’s high power distance, a particular
society puts a particular emphasis on power and
wealth, whereas ‘low power distance ranking’
presupposes that a particular country does not
care much about power and wealth differences
(Gorman, 2006). In particular, considering
power distance dimension, such countries
as Norway, Sweden, USA, Israel and Great
Britain and Israel are regarded as small power
distance countries. Conversely, numerous
researches indicate that South American
and Asian cultures are known as large power
distance ones. At that, large power distance
is featured by overwhelming centralisation
and less transparent or/and participative
decision-making. To support this particular
dimension it is important to emphasise that
every organisation has its own unique culture
or value set; at that, most organisations do
not consciously try to create a certain culture
since the latter is created unconsciously,
based on the values of the top management
or the founders of an organisation. Hence,
senior management sets out definite rules and
regulations to be followed by all the employees
within the organization. For instance these
typically include: mutual respect, a sense of
community, and professional commitment to
one’s duties (Hofstede, 1980; Hofstede, 1991).
On the other hand, however, small power
distance is characterised by decentralisation
09 |

www.maltaeconomicupdate.com

and open decision-making procedures. At
that, appropriate human resource strategy
enables to ensure that leaders have the
skills, knowledge, confidence and support
to fulfill their responsibilities; ensure that
leaders develop and deploy the organisations
corporate objectives via departmental plans
and engage in a process for measurement,
review and improvement of performance at
an organisational, team and individual level,
encourage leaders to review and improve the
effectiveness of their own leadership, promote
effective communication between members,
managers and employees with opportunities
to challenge in both directions, communicate
and consult with leaders on issues that affect
them, research and promote best management
practice and to ensure that this is reflected in
all policies and procedures (Hofstede, 1980;
Hofstede, 1991).
For instance, the Thai culture significantly
affects business transactions. In spite of the
fact that Thai people are tolerant to different
behaviours, the optimal approach is to remain
polite and respect others without losing
one’s temper or raising one’s voice. At that,
ethical standards, openness, transparency,
and accountability are being established in
Thai society since Asian crisis of 1997. Thus,
it is apparent that the Thai culture is quite
complicated and differs from the Western
business culture. At that, the Thai culture
significantly affects business transactions. In
spite of the fact that Thai people are tolerant
to different behaviours, the optimal approach
is to remain polite and respect others without
losing one’s temper or raising one’s voice.
Moreover, direct personal questions are
common and not inappropriate. Though,
overall people tend to be indirect while dealing
with others and go around an issue rather
than directly to the key point; hence, tasks
may be accomplished less efficiently and less
quickly than with a direct approach. (Tilleke
& Gibbins International Ltd, 2003). Thus,
management practices in compliance with
centralisation methods are more effective
in large power distance countries since in
centralized organisations management control
remains on a high organisational level, limiting

or even excluding any delegations. At that,
managers are restricted in their decisionmaking capacity. Consequently, measures
that focus on following procedures and plans
are more likely to be accepted in companies
operating in large power distance countries
(Lere and Portz, 2005). On the other hand,
decentralised practices will bring more
benefits in organisations dealing in small
power distance countries. As a matter of fact,
decentralised organisations presuppose that
managers should perform in an independent
manner by self-developing and applying
their leadership qualities, as well as decisionmaking and problem solving skills (Lere and
Portz, 2005).
Uncertainty avoidance indicates that we try
to avoid those situations where expectations
and results are not clear to us. Such situations
are featured by poorly defined or ambiguous
conditions. Thus, employees prone to high
uncertainty avoidance will never break
corporate rules, even if it is necessary under
certain conditions, and will remain loyal to the
same company during decades. Such people
totally avoid any changes, either temporary or
permanent, and therefore would rather work
with people they know for a long time, rather
than strangers (Gannon, 2001).
“Over the past decade, personality
is vastly tested to invent “one-sizefits-all” approach for better work
performance”

Individualism refers to an individual-group
interaction. In broader terms, Griffin and
Pustay (1998) claim that individualism puts
every person on the first place, and therefore
our own interests naturally overtop those of
others. At that, individualism permanently
opposes collectivism. At that, we are able to
understand whether individual or collective
values are mainly shared by a particular
country or society within certain achievements
and interpersonal relationships. In addition,
individualism determines the extent to which
individuals are likely to integrate into groups.
Regarding individualism versus collectivism,
Hofstede studied 53 countries, out of which

SPECIAL FEATURE

the United States gained the highest score,
which means that the country should be
regarded as the most individualistic compared
to other world countries in accordance with
individualism cultural dimension. Other
countries prone to individualism were
Australia, Great Britain, Canada, and the
Netherlands. On the other hand, collectivismoriented countries were Panama, Ecuador,
Guatemala, El Salvador, Costa Rica, Colombia,
and Portugal, Indonesia, Taiwan and Pakistan
(Lere and Portz, 2005).
Hofstede’s masculinity or ‘goal orientation’
predetermines materialistic and aggressive
behaviour to reach one’s goals and/or
ambitions (Firoz et al, 2002). Overall, in
Hofstede’s terms, masculinity is focused on
the extent to which society is able to reinforce
the conventional masculine role model of
male attainment, power and control. At that,
masculinity distributes the socio-cultural roles
between genders. In due context, Hofstede
states that women’s values are different from

orientation ranking most value traditions and
social obligations. However, many experts
regard this Hofstede’s dimension as the least
convincing compared to the first four.

Long-term orientation determines our outlook
on life, work, family and other important sociocultural issues. To this end, Asian cultures, for
example, are rather long-term oriented with
an emphasis on dedication, perseverance
and hard work, whereas other cultures focus
much on their past experiences and present
conditions while respecting their traditions
and fulfilling present-day commitments (Firoz
et al, 2002). Finally, according to Hofstede,
long-term orientation bears relation to the
virtue regardless of truth. For instance, thrift
and perseverance are the values particular to
long term orientation, whereas short-term
orientation is featured by fulfilling social
obligations, respecting traditions, and saving
face. Therefore, cultures with high long-term
orientation ranking most value thriftiness
and perseverance, whereas a high short-term

Personality as an important psycho-emotional
subject is widely researched by psychologists
within the framework of academic agenda and
empirical investigations. Over the past decade,
personality is vastly tested to invent “one-sizefits-all” approach for better work performance.
This necessitates an in-depth examination of
personality in work behaviour. Therefore, a
diverse workforce is a reflection of changing
world and market place. Demographics are
not the only things changing, individual
mindsets are changing dramatically, with more
emphasis on being accepted and respected
as individuals. Diversity management will
benefit workforce by creating a fair and safe
environment where everyone has access to
opportunities and challenges (Hofstede, 1980;
Hofstede, 1991).
TEU

All rights reserved | Copyrighted

August 2013 | THE ECONOMIC UPDATE

| 10

Glass-blown tableware

Vases & bowls

Lampshades, floor lights,
pendant lights and chandeliers

Fused glass plates & bowls

The Nature of Art. The Beauty of Colour.
Handmade, unique, inspirational... the wide range of innovative products from Maltaâ&#x20AC;&#x2122;s
original glassmaker includes vases, bowls, lighting, tableware, scented candles,
Christmas decorations, picturesque scenes and much, much more.
Mdina Glass. Glassblowing, lampwork and fusion at its finest.

OPENING LUNCH AND
DINNER DAILY
Now open Lunch (12.00-2:30) and Dinners
(7.00pm-11.00pm) daily. Zeri’s is located at the
prestigious Portomaso Marina in St Julians
enjoying full marina views. This highly acclaimed
restaurant presents a menu that is imaginative
and inspirational and that reflects Zeri’s ( as
Mark the Chef patron is known) personal skills
in adapting and creating dishes with a traditional
Mediterranean flavor. Daily specials include an
array of fresh high quality meat and fish dishes
namely fresh scallops, black mussels, local king
prawns tossed with pasta. Not to mention the
selection of daily fresh fish which can be can
cooked in a variety of cooking methods such as
grilled, Al Sale and Al Cartoccio. Meat dishes

including USDA rib eye, milk fed veal rib eye,
or lamb fillets all cooked to perfection. Moving
on to the wine list which brags over 170 wines
organized from country of origin to a more
specific region of origin with brief descriptions to
make your selection process as simple as possible.
There is a good selection of wines by the glass and
a good range of half bottles to please every palate.
Great food, quick service and a relaxing ambience
make Zeri’s the place to go whether it is for lunch
or for dinner, for business or for pleasure.
Offering free parking at Portomaso. It is
highly recommended to call for a reservation.
Also accepting bookings for large groups and
special functions.

Zeris will be opening for lunch at the
beginning of October 2013 , daily and we are
open for dinner 7 days a week.
We are located just down the stairs at the
Portomaso Marina, first restaurant on the right.
We have outdoor seating , Marina views and we
offer free parking to all of our guests.
If you want to impress a guest whether it is
for business or for pleasure, you cannot go
wrong at Zeris.

August 2013 | THE ECONOMIC UPDATE

| 12

IT EDUCATION

PORTOMASO BUSINESS
TOWER
Club • Lounge
in the highest building in Malta.

Located in the heart of St Julian’s, the state-of-the-art
Portomaso Business Tower has become one of Malta’s most
iconic mo dern landmarks. At 98 metres tall, it was built
to the highest specifications to offer a top-quality business
environment.
Height: 98 m
Opened: 2001
Floors: 23
STRUCTURE IN GENERAL
Building type : high-rise building
Building status : existing [completed]
Architectural style : modernism
CORPORATE OBJECTIVES

To offer our customers a quality
service which they can perceive
as value for money. To instil in our people pride in our
product, customers and business partners. To achieve
from our people a high level of commitment to the
organisation without which an excellent service would
be void of value. To generate a level of profitability as the
basis for continued growth, giving security and fair reward
to our people, financiers and other business partners,
and providing a fair return for the risks and efforts of the
shareholders. To foster a spirit of enterprise, creativity
and innovation throughout the organisation within the
concept of a sound Group culture. To maintain an open
and forward-looking philosophy towards all opportunities
for growth and diversification, both locally and beyond
Malta’s shores. To make a significant contribution to the
national economy.

Twenty Two is situated on the top floor (22nd floor) of
the Portomaso Business Tower. The Tower is the highest
building in Malta, featuring panoramic views of the
Mediterranean Sea, towns and cities.

Portomaso is a unique and waterfront development
situated in the fashionable district of St Julian’s, on
Malta’s north-eastern coast. The exhilarating Portomaso
development overlooking a magnificent yacht marina,
bordered by a tree-lined promenade, is very accessible
and can easily be reached by car, taxi, public transport
and naturally by yacht. Boasting extensive underground
parking facilities, the development includes the five-star
deluxe Hilton hotel, luxurious apartments, a spectacular
conference centre, and a range of diverse and selected
bars, restaurants and shops.
Courtisy: Tumas Group

GrowTh
INVESTMENT SOLUTIONS

in tune with global themes
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managers of the Vilhena Global Themed Fund, vigilantly identify and select
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capture attractive returns.

Vilhena Global Themed Fund
80072344 i www.vfm.com.mt

BOV Branches/Investment Centres & Licensed Financial Intermediaries
Past performance is not a guarantee to future performance. The value of the investment can go down as well as up and currency fluctuations and any initial charges may lower the amount
invested and the amount received upon redemptions. Investments should be based on the full details of the Prospectus and the Key Investor Information Document which may be obtained
from Valletta Fund Management Limited (VFM), Bank of Valletta plc Branches/Investment Centres and other Licensed Financial Intermediaries. VFM is licensed by the MFSA. The Vilhena
Funds SICAV plc is licensed by the MFSA and qualifies as a UCITS. Issued by VFM, TG Complex, Suite 2, Level 3, Triq il-Birrerija, L-Imriehel, BKR 3000, Malta. Tel: (356) 21227311, Fax:
(356) 22755661, Email: infovfm@bov.com, Website: www.vfm.com.mt. Source: VFM

Charles Xuereb worked with a leading firm of auditors before joining the Farsons Group of companies. He
started his career in industry as Chief Accountant of the group’s international food franchising business, then
assumed the role of Financial Controller of a newly acquired food importation business in 2004.

THE DEVELOPMENT
Considered to be Malta’s most exclusive
residential, leisure and business address,
Portomaso has won numerous awards
including the Gold Award in the Luxury
Development Category in the Best Marina
Development Category of the 2005
International Property Awards – arguably the
most coveted award available to the industry.
THIS SEAFRONT PROJECT COMPRISES:
• 420 luxury 1-3 bedroom apartments and
penthouses;
• the 5-star Hilton Malta;
• a private yacht marina;
• a 23-storey business tower;
• a major conference venue;
• an underground car park;
• exclusive bars and restaurants;
• a casino;
• a shopping complex.
THE PORTOMASO LIFESTYLE
Portomaso provides a tranquil haven within
the busy centre of St Julian’s in the heart of
Malta. Just seconds from many of the Island’s
TYPICAL PORTOMASO APARTMENT

15 |

www.maltaeconomicupdate.com

top restaurants and bars, as well as its nightlife
capital, Paceville, the development is an oasis of
calm with top facilities and mesmerising views.
St Julian’s has plenty to offer all sorts of
investors – whether you plan to move here
alone or with your family. Once a quiet fishing
village, it has developed to offer everything
that you would expect from a destination
of its calibre, as well as close proximity to
the rest of the wonderful things that Malta
has to offer – including beautiful beaches,
top shopping streets and UNESCO World
Heritage sites.
TUMAS DEVELOPMENTS COMPANY
PROFILE
A spirit of
innovation

enterprise,

creativity

and

Described as Malta’s most enterprising
and exciting entrepreneur in property
development, Tumas Developments has
been instrumental in developing many of the
Island’s most prestigious projects.
Launched in the 1960s by Tumas Fenech, the
company grew quickly based on its values of

ingenuity, expertise and skill, and successfully
revolutionised the local property industry.
By purchasing under-used real estate, the
Group breathed new life into Malta’s then
inert tourism and property markets, helping
to beautify the community and fuel the
country’s economy.
There have been numerous milestone
projects over the years, but none more
magnificent than the international awardwinning Portomaso marina, hotel, leisure
and residential development. Commencing
construction in the late 90s, Portomaso
represents a unique multi-million investment
that has revolutionised the way people live
and work in Malta.
Today the Group continues to diversify,
working on a variety of Hospitality,
Commercial and Lifestyle developments. The
company has its finger on the pulse of where
the property market should be heading, and
is resolved to set new standards, both in
Malta and overseas. A proven track record
guarantees that these aims are achieved.
TEU

Sources: http://www.tumasdevelopments.com

SPECIAL FEATURE

PORTOMASO BUSINESS TOWERS & BEYOND

PORTOMASO BUSINESS TOWER  THE FACTS

The Portomaso Tower is a new landmark
office and commercial project in Malta. An
outstanding concept built to high standards
of design, Portomaso Tower is the only project
of its kind in Malta, and certainly one of the
most distinctive in the Mediterranean region.
Conceived as a focal point in the prime
residential, commercial and touristic area of St.
Julians., the 28 storey Tower is Malta’s highest
building, its magnificent structure echoing
the visual effect of the Baroque churches in
the Maltese skyline. The offices and outlets
in the Portomaso Tower can cater for a
wide spectrum of professional, commercial
and service companies, ranging from legal
chambers to corporate headquarters.
Malta’s financial laws present a particularly
restriction-free ambient that cannot fail to
attract the investor and commercial buyer.
While there exists a wealth of tax and fiscal
benefits, Malta is not perceived as a tax
haven by international authorities. The
Island’s financial statute includes various
advantageous provisions that include duty and
exchange control exemptions and immunities,
corporate tax holidays on export-oriented
operations, guarantee of rights and other
incentives and privileges. The country’s solid
economy and low inflation rate further make
Malta an excellent proposition for investment
and commercial expansion.
Top grade amenities available within
Portomaso put the Tower in a class of its own
17 |

www.maltaeconomicupdate.com

as a complete and totally viable solution for the
business or commercial owner and include:
• A major 1500 seat convention centre
• The new 5-Star luxury Hilton Malta which
opened in February 2000
• The adjacent Portomaso Yacht Marina, the
newest project of its kind in Malta
• A prestigious residential estate offering
a selection of luxury apartments and
penthouses
• Shopping centre, health club, landscaped
natural areas
Portomaso Tower has on-site parking, security
and other facilities. The offices and outlets
of the Portomaso Tower rank as the most
prestigious on the Island, with most suites
commanding spectacular 360o view over the
panorama of the Maltese Islands and the open
Mediterranean sea. They are designed to the
highest state-of-the-art standards to satisfy the
most discerning client. The plan configuration
gives full flexibility, with available open-plan
areas ranging from 20sqm to 750sqm on one
floor.
The upper floors of the Tower have an average
net useable area of 300sqm in addition to
circulation areas of office space is available
fully fitted out, or in advanced shell form,
thus affording the buyer the full possibility
of finishing and furnishing to one’s tastes
and specifications. Facilities include: 3 lifts to

each floor; air conditioning; fresh air system;
alarm and sprinkler system; 2 fire escapes;
security system; luxury bathroom facilities; car
parking space for occupants and visitors and
comprehensive maintenance.
The developer prefers the rental of office
space rather than outright sale. Rental rates
start from Lm65 per sqm for a minimum
of 305sqm; Lm75 per sqm for areas of more
than 200sqm; Lm85 per sqm for areas of over
100sqm and from Lm100 per sqm for areas
under 100sqm. These rental rates are for office
space in advanced shell form. Finishing works
can be carried out to tenants specifications.
The professional or corporate client seeking a
prestigious office or base in Malta will find it
difficult to find a comparable location both for
residential and business purposes.
TEU

Source: MaltaProperties
Editor’s Note: MaltaProperties was set up as a marketing tool
for Maltese properties and Malta as a destination and to give
personalised and individual attention to non-resident clients.
Our experience has enabled us to develop a close knowledge of
the leading developments and properties on the island.

We all live under the same sky, but we
don’t all have the same horizon.

At Sparkasse Bank Malta we understand that as successful individuals, our
clients’ look for private banking services that are different from the norm –
and this difference is reflected in services we offer.
From tailored banking services, wealth management, structured
investments to capital protection and investment administrative services
Sparkasse Bank Malta plc is your trusted partner.
To discover more about how we can help you with your financial and
investment needs, please contact us – a member of our team would be
delighted to meet with you.

Charles Xuereb worked with a leading firm of auditors before joining the Farsons Group of companies. He
started his career in industry as Chief Accountant of the group’s international food franchising business, then
assumed the role of Financial Controller of a newly acquired food importation business in 2004.
For the last eight years he held the office of Chief Financial Officer
of the group responsible for the overall financial management of the
group, sits on the board of directors of all the subsidiary companies
and forms part of the Group Executive Board.

Mr Joe Hili
Francis Busuttil & Sons Marketing Ltd
Mr. Anthony Rossi,
M. Demajo Group of Companies
The Malta Association of Credit Management (MACM) is a notfor-profit organisation, providing a central national organisation
for the promotion and protection of all credit interest pertaining
to Maltese businesses.
MACM represents the credit profession across all economic
sectors. It is a centre of expertise for all matters relating to credit
management in Malta.
MACM offers a range of services to the local creditors, including, credit
management information systems, credit management education,
training, conferences, seminars, and lobbying activities. It is the ICM
(UK) accredited Training Centre for Malta. MACM is a member of the
Federation of European Credit Management Associations – FECMA.
TEU

All rights reserved | Copyrighted
All rights reserved | Copyrighted

Editor’s Note
A Certified Public Accountant by profession, Charles
Xuereb worked with a leading firm of auditors before
joining the Farsons Group of companies in July 1995.
He started his career in industry as Chief Accountant
of the group’s international food franchising business,
then assumed the role of Financial Controller of a
newly acquired food importation business in 2004.
For the last eight years he held the office of Chief
Financial Officer of the group responsible for the
overall financial management of the group, sits on
the board of directors of all the subsidiary companies
and forms part of the Group Executive Board.He has
been a council member of M.A.C.M. for the last seven
years and a Vice President for the last two years.
Charles is married and has a 13 year old daughter.

August 2013 | THE ECONOMIC UPDATE

| 21

ACCOUNTANCY PROFESSION

Thought Leadership
By Martin Vella

An Interview
with Maria
Micallef, Head
of the Malta
Institute of
Accountants
MIA President Maria Micallef is
modest about her appointment to the
Presidency of the Malta Institute of
Accountants. Although the President
is at its helm and is likely to leave his
or her mark during the term of office,
she reminded us that the Institute is
managed by a body of persons who are
all dedicated to serve the profession.
Ms. Maria Micallef made history in July
2013 becoming the first woman to head
the Malta Institute of Accountants.

Editorâ&#x20AC;&#x2122;s Note
Maria Micallef is one of the founding partners of RSM Malta
and is currently the partner in charge of risk management and
business advisory services in the firm. Maria has been in practice
for over twenty years during which time she obtained extensive
experience in assurance, risk management and business advisory
services, both locally and overseas. Maria is responsible for major
assignments relating to the preparation of feasibility studies, cost
control, internal audit, investigations, due diligence, business
restructuring and investment appraisals. Maria is a visiting lecturer
at the University of Malta. She also provides training courses
to internal auditors in the public and private sectors. Currently
Maria participates in Continued Professional Education Seminars
lecturing on Internal Audit and Fraud. Maria has a B.A. Hons
Accountancy degree and is a Certified Public Accountant. She is
a fellow of the Malta Institute of Accountants, a member of the US
Institute of Internal Auditors and a Certified Fraud Examiner. Maria
is currently the President of the Malta Institute of Accountants.
24 |

www.maltaeconomicupdate.com

TEU: How do you intend to re-invent MIA under
your helm to remain relevant in todayâ&#x20AC;&#x2122;s markets
and to proactively address outstanding issues and
what is your vision moving forward?
MM: More than reinvention, the key is to continue
to build on what there is bearing in mind the
circumstances we find ourselves in today. My vision
of the Institute is to bring it as close as possible to
its members such that each of us will regard our
membership as vital to execute well our profession.
The Institute has come a long way. MIA is probably
one of the oldest professional Institutes on the Island
and has provided many services and support to its
members during these years. We tended however to
keep a low profile and although this may have served
us well in the past it may not be so effective today
in times where we must not only be active but seen
to be active. One of the areas I would like to give
emphasis to during my term of office is Thought
Leadership. We are fortunate that the Institute has
the necessary competencies, talent and resources
to be able to speak with authority on relevant topics
whether technical or ethical and we would like to

ACCOUNTANCYITPROFESSION
EDUCATION

become a point of reference to third parties
that may be deliberating certain subject matter
of relevance both to the profession and the
public good. The latter has always been a very
important consideration from our perspective
as we firmly believe that if we only serve our
self-interest as a profession we will fail.
We also need to make better use of the media
which today has become such an effective and
forceful medium. We need to put forward our
views with clarity and reason whilst avoiding
the risk of turning matters into, or end up
participating, in a public circus as sometimes
happens in the media even with the most
serious of issues.
TEU: How do you intend to ensure safe and
sound ethical practices by MIA members?
MM: Ethics and good governance are the
cornerstone of our profession so much so
that today these subject matters are regarded
as fundamental in the professional training
provided to our graduates by University and
professional bodies.
Our members are bound by a professional
code of ethics. Our members are also obliged
to carry out a certain number of hours of
professional education every year to be able
to retain their membership and the state
warrant. This ongoing education helps to keep
members up to date with the developments
taking place in ethics and governance.
The Institute has its own investigation and
disciplinary procedures that are meant to
address any complaints that may be raised
with respect to any of our members. We do
not carry out witch hunts and look at the facts
presented to come to a fair and logical decision
that, if necessary, will address any wrong doing
on the part of our members.
TEU: Will you reign in any abuses which
have not been officially reported during
your tenure?
MM: I call this a loaded question. As in every
profession, as indeed in every walk of life, you
are always going to have the ones (exceptions if
we are doing things well) that are errant. This
is life and no amount of regulation, legislation
or deterrents are ever going to zeroise this risk.
Each of our members is responsible for our
collective professional reputation and the vast
majority of our members work hard and well
to safeguard this reputation. Unfortunately
in the media when there is a rotten apple it
gets photographed and talked about much
more than a thousand good ones. We have
a membership of 2,300 individuals and I can
assure you that the vast majority of these
people are honest, hard working, competent

individuals as may be attested by their clients,
employers and other third parties we have
regular dealings with.
In those rare instances where our members
have through their actions broken our code
of ethics and conduct we have taken the
necessary action. We will continue to do so
in the future as the Institute has no interest or
intention to protect such members. I repeat
however that such instances are few and far
between – indeed in the time I have been a
council member (these last 8 years) I have
come across very few such cases.
TEU: In light of the agreement with
MIA-ICAEW, will MIA increase similar
agreements under your Presidency?
MM: Education is key to our Institute. We
however have limited resources and as such we
need to collaborate with other organisations to
be able to share information and tools that may
be relevant to our members. Our agreement
with ICAEW gives our members access to
professional material they have developed and
also caters for the joint delivery of seminars on
subject matters that are current and relevant to
our profession.
“When Arthur Anderson fell, it
wasn’t the Chicago office, it was
the worldwide network that went
down”

We have collaboration agreements or
arrangements with other international and
local organisations, such as ACCA and the
University of Malta. We value them all as each
one of them enables us to better serve our
members whether students or graduates.
Collaboration is successful if it is a two way
street and this is what we try to achieve with
all third parties that we work with.
One of the challenges we face is the need to
attract the best and brightest students to our
profession. Irrespective of which course they
follow to obtain their qualification, whether
through university or professional route, we need
to ensure as an Institute that we are reaching out
to the young students to make them aware of the
opportunities in our profession.
TEU: You have in the past promoted
thought leadership values and lobbied with
third parties. What are your views on good
governance and thought leadership when
they work hand-in-hand?
MM: When you are a professional there is a
high element of trust in the relationship you are
going to build with your client. And unless you
are governed by ethics and good governance

principles that trust will be breached. Once it is
breached, significant harm is not only done to
the individual but also to the profession. One
glaring example of how the action of the very
few can have global ramifications is the Enron
case. The result was that the whole profession
suffered worldwide. Because of Enron Arthur
Anderson fell. I used to be a partner of the local
office that represented Arthur Anderson in
Malta . When Arthur Anderson fell, it wasn’t
the Chicago office that closed down, it was the
worldwide network that went down. When
you breach the trust the ramifications are not
just on oneself but the profession as a whole.
So as an institute we will always predicate the
importance of ethics and good governance.
Our emphasis on good governance also
serves our members in good stead when we
accountants move on to other posts including
leadership positions.
Naturally you cannot achieve thought
leadership unless you are regarded as a
competent and trustworthy body by your
audience. We also need to work harder to
build on-going communication and working
relationships with third parties with whom
our members interact actively on an on-going
basis such as banks, regulators, professional
bodies and the like.
TEU: What benefits The Accountant
magazine offers to its members and
especially ACCA students and Corporate
organisations in terms of thought
leadership?
The target audience of The Accountant are
our students and members. The greater part
of this publication relates to technically related
articles, or developments happening within
our profession. We also have a section called
the lifestyle section where we focus more on
the lifestyle of a particular Accountant. There
is then a specific student section dealing on
what is happening academically.
You have two thousand three hundred members
and also an appreciable number of students, so
that the audience is quite large but dedicated.
Bear in mind that notwithstanding you may
find our journal on the coffee table or waiting
area in an office and thus it may be that it is
also read by people outside of the profession.
Having said that though, I do not think that
our journal is the more effective forum to
make our opinion known to the world outside
of our profession. We have to use other fora
for that purpose.
We are also currently considering the
possibility of having an ijournal.
TEU

All rights reserved | Copyrighted

August 2013 | THE ECONOMIC UPDATE

| 25

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MACM Profile:
The Malta Association of Credit
Management (MACM) is a not-forprofit organisation, providing a central
national organisation for the promotion
and protection of all credit interest
pertaining to Maltese businesses.
MACM represents the credit profession
across all economic sectors. It is a centre
of expertise for all matters relating to
credit management in Malta. MACM
offers a range of services to the local
creditors, including, credit management
information systems, credit management
education,
training,
conferences,
seminars, and lobbying activities. It
is the ICM (UK) accredited Training
Centre for Malta. MACM is a member
of the Federation of European Credit
Management Associations – FECMA.
MACM is the distributor of Graydon
International Credit Reports in Malta.
Trade credit is the oil that keeps the wheel
turning. ‘Buy now - Pay later’ encourages
more sales as it allows time for the buyer to
add value or service to the goods and resell
the product before paying for the supplies.
It may also serve as a means of short-term
finance to the buyers. This makes credit not
only a valuable commercial factor but also
significant throughout the supply chain.
One of the main challenges in today’s business
world is surely the high level of competition.
Businesses are striving to satisfy the needs
and expectations of their customers in order
to gain and sustain competitive advantage
in their respective markets. And selling on
credit is one of the most effective tools to
maintain market share.
But money costs money! Granting credit
does not come for free and it also carries an
element of risk. Selling on credit entails the
supplier to invest money in its customers and
should be ready to take the risk of being paid
late or not paid at all.
Nevertheless, there is nothing wrong with
trade credit as long as it is well evaluated,
analysed and responsibly granted according
to the specific risks involved.
28 |

www.maltaeconomicupdate.com

To minimise the risks involved in credit,
it should only be granted against a clearly
written document duly signed by both
parties – the suppler and the customer. This
document, commonly referred to as the
Credit Application Form, should include
not only the conditions of sale but also the
payment terms as agreed by both parties.
A credit application form also serves as a
contract of sale between the supplier and the
customer and a basis to analyse the credit
worthiness of the prospective customer.
A sample of a credit application form is
available from MACM through its website
www.macm.org.mt
Customers buying on credit should never
perceive the credit application form as
bureaucratic, intrusive or officious in any
way and should cooperate wholeheartedly
with their suppliers when served with such
document. Completing and signing a credit
application document upon a trade credit
request would ensure sound cash flow and
secure long-term profit for both parties.
Therefore, the Credit Application Form
should be perceived as an informative tool for
the customer buying on credit. Customers
are made aware of the payment terms agreed
with the suppliers; interest and charges which
may apply in case of late payment; discounts
for early payments; and retention of title,
if applicable. These agreed conditions and
terms should be clearly stated in the credit
agreement document.
Additionally, a written credit agreement, duly
signed by the two parties, would help to build
and maintain long-term business relationship

since it would prevent future disputes. If a
credit sale transaction lacks clear and written
payment terms, what evidence of the agreed
credit terms would there be if any dispute
arises in the future? It would be a case of the
supplier’s word against the customer’s! These
undesirable circumstances would harm the
business relationship between the two parties
and both parties would lose business and
money, especially if legal proceedings would
be necessary.
Good credit management practices suggest
suppliers to use effective and reliable sources
of information which assist them in their
analysis of the creditworthiness of their
customers prior to granting them credit
and also in monitoring their existing credit
customers on an on-going process. These
sources of information are valuable as they
help suppliers to take proactive actions if and
when necessary.
Knowing your customer is the key that opens
the door to business success and this theory
particularly applies when selling on credit.
Credit sales should result in better profit to
the supplier but it can only happen if good
credit management practices are followed
and good customer relationship is built
and sustained through proper agreements
between parties.
“Patti Chiari, Amicizie Lunghe” as the Italian
saying goes.
TEU

All rights reserved | Copyrighted

Editor’s Note
Josef Busuttil is Director General of MACM – Malta
Association of Credit Management and Vice President
of FECMA – Federation of European Credit Management
Associations. Josef lectures Credit Management and
Business Studies at MACM Training Centre - The accredited
Teaching Centre of The Institute of Credit Management
(UK) for Malta. He conducts in-house training for
companies and has also contributed to a number of
business workshops, seminars and leading conferences
organised by different organisations in a number of cities
around the World, including Antwerp, Bucharest, Dubai,
Dublin, Johannesburg, London, Madrid, Malta, Mexico
City, Paris, and Vilnius. Josef is a regular contributor of
business articles to local and foreign business press.

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OFFICIAL AGENTS OF SAMSUNG IN MALTA

INDUSTRY

We Serve You Better

by Mark Vassallo

Aluserv Ltd has been in the production
of aluminium apertures since May
1991. Over the past years it has grown
to be one of Malta’s leading aluminium
window manufacturers with a work
force of over ninety-five employees.
For the past few years the production
has been of ten thousand square
meters of apertures consuming no less
than one hundred and fifty tonnes of
aluminium profiles per annum.
Situated in Mriehel industrial estate,
with a production floor of 3,500
square meters, the company has built a
reputation as a supplier of high standard
apertures, with an impeccable after
sales service. This is all backed with
state of the art “cnc” machinery, a fleet
of vans and most of all, experienced
personnel.
All aluminium, accessories and glass
are acquired from Italian companies
“the Servgroup Team will
never stop its collective
endeavours towards being
the pioneers in offering new
and better aperture systems,
of a higher standard than the
present”

who are ISO certified. Aluserv is ISO
certified and production is based on
ISO 9001/2008 quality management
standards. The company’s policy is that
no order is too small or too big.
During 2005, Aluserv Ltd started
the production of Solid Timber
Apertures. This production is possible
due to the employment of Master
Joiners who have vast experience in
the sector. The 500 square meter
factory is also situated in Mriehel

Industrial Estate and has modern
woodworking machinery, keeping in
with Aluserv’s administration policy
of “Quality Products”.
Due to a high demand from clients
for a full service of apertures in any
material, it was decided to introduce
the production of Iron and Stainless
Steel Apertures in 2007. This has
been a success beyond the directors’
aspirations due to the quality and fast
service being offered.
To date, Aluserv Ltd has diversified
with so many products it was decided
to launch the Servgroup Brand. This
rebranding was carried out in 2010
and today clients can avail themselves
by getting the whole service be it
Aluminium, Steel, Wood or PVC.
After almost 16 years with the factory
in Mriehel Industrial Estate, another
era will start in the beginning of 2014,
when the group will be moving to a
bigger factory, situated in the Corradino
Industrial Estate. All productions will
be under one roof thus increasing
optimization of works considerably.
The company’s mission statement is
“the Servgroup Team will never stop
its collective endeavours towards being
the pioneers in offering new and better
aperture systems, of a higher standard
than the present, at the lowest possible
price, with an unrivalled after-sales
service to the local market and beyond”
For further details visit the Servgroup
website
www.servgroupmalta.com
or showroom in Triq In- Negozju,
Mriehel Industrial Estate.
TEU

Editor’s Note
Mark Vassallo, Founder and Managing Director at Servgroup Ltd. He has been in the aperture
manufacturing sector, both locally and in North Africa, for almost 30 years, establishing the
Servgroup brand as leader in Quality and Excellent Service.

30 |

www.maltaeconomicupdate.com

IT EDUCATION
BUSINESS
ADVISORY

ONLINE PRESENCE –
BEYOND SOCIAL MEDIA
By Robert Farrugia

Online Presence is a subject that is repeatedly hitting the boardroom
across all industries. Organisations have realised that Online Presence
can have a direct and positive impact on revenue, reputation and
quality of service, when applied appropriately.
Online Presence is a subject that is repeatedly
hitting the boardroom across all industries.
Organisations have realised that Online
Presence can have a direct and positive impact
on revenue, reputation and quality of service,
when applied appropriately.
Effective Online Presence is about the fusion
of web, social media, mobile and apps, with
appropriate presence management and robust
and flexible IT. The use of such online tools
needs to be within the context and in alignment
with an organisation’s vision and strategy.
Finding the right strategic balance on what
and how to use the variety of online tools that
are available, is critical. Regrettably, in the last
few years the advancements of social media
platforms has shadowed the importance of
websites. However, a well constructed website
can be more effective than social media at
influencing consumer decisions. While such
a statement might sound absurd in today’s
social virtual world, research has shown that
while social media is widely used to research
products and services, a company’s website
has greater influence in purchase decisions
than the company’s social media presence. In a
global survey carried out by KPMG1, a third of
respondents admitted that they were influenced
in their purchase decisions by social media
‘fan pages’, while almost half said they look to
company websites instead.
This can likely be attributed to consumers
wanting to see the products and the technical
specifications which are typically found on
a company’s website rather than on its fan
pages, which are predominantly used for brand
building. This heightens the importance of
building websites on functionality rather than
just appearance; Otherwise businesses run
the risk of losing potential customers online.
If an online user hasn’t seen something that
grabs their attention within eight to 10 seconds
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www.maltaeconomicupdate.com

of visiting a webpage, they leave. Businesses
overcrowding websites with content and
complicated technical bells and whistles are
shutting out potential customers.
Businesses could better use websites to attract
and engage online customers. This could be
achieved in the following five ways:
“a well constructed website can be
more effective than social media at
influencing consumer decisions”

1 Keep it simple – the trick here is to keep
your website as simple as possible. Website
owners should avoid cluttered screens,
long-scrolling pages and slabs of text. If a
website user can’t find what they’re looking
for straight away because of overwhelming
content, they will leave. Flashing signs and
advertisements will also deter them and
force them to click elsewhere.
2 Understand your online customers - Online
customers have choices on the Internet
– they don’t care about the vision of your
business nor do they follow instructions
carefully. They are impatient and want
relevant content immediately. Therefore, it
is crucial to find out what Customers want
in order to present content that suits them
and your business. Be sure to engage them
to create a dialogue.
3 Make it easy - The key message here is to
make it easy for people to do business with
you online. For instance, make important
features easy to see and use. Provide
easily accessible online forms, searchable
catalogues and booking forms and offer safe
credit card facilities. Above all, guide your
website visitors through any process so it is
as manageable as possible. Any feature that
requires users to think too much or click too
far with no perceivable end to it will put them
off. Functionality wins over form every time.

4 Google ranking - it is valuable for any
business to have a top search engine
placement and high ranking in Google
to best attract customers. Online visitors
are more likely to discover your website
through a link in Google search. More often
than not, this won’t be your homepage but
a link to one of the pages on your website.
Therefore, treat every page on your website
as a homepage.
5 Find ways to make your website save you
time and money - business owners could
potentially save time and money by making
more effective use of their website. Get
website visitors to fill in forms online and
allow them to order, book and download
information online. You could also reduce
phone and face-to-face contact enquiries
and the length of each contact by providing
the right information on your website.
KPMG Malta has recently introduced a new
service line whereby the online presence of an
organisation is assessed; with a view to help
organisations make the best use of the online
tools at their disposal. Such an assessment
helps organisations enhance their customers’
experience - the result of which often translates
to gaining a competitive advantage. In tandem,
such an exercise also helps organisations yield
benefits which are clearly unattainable without
an adequate online presence strategy.
TEU

KPMG

International’s

5th

Annual

Consumers

and

Convergence survey - 2011

Editor’s Note
Robert Farrugia is a manager
within KPMG’s IT advisory team in
Malta, specialising in information
security and IT assurance.

ASSURENCE
NEWSMAKERS
AND TAX

JAZZ UP YOUR DRIVE WITH THE HONDA JAZZ
The new Honda Jazz accommodates all your needs in a truly advanced
personal car. Boasting an optimum balance between a sporty exterior
and a spacious
cabin, the Jazz gives
great flexibility in all
aspects of the drive.
Jazz’s ULTRA Seats
and interior design
focuses on comfort
and ease of use,
with a remarkably
spacious and roomy
interior not usually
seen with such a sleek and sporty exterior.
Its sporty lines will grab your attention at first glance. The dynamic,
forward-shifted body creates a refined, streamlined posture that’ll
sweep you away to an exciting new adventure. A radically slanted
windshield achieves better aerodynamics as well as increases the
driver’s view. It’s a look that captures the eye of every passerby. From its
dynamic face to the compact tail, the Jazz imparts a sense of amazing
performance and sure-footed agility. Even though it might be sporty
on the outside, this little car still manages to be incredibly spacious on
the inside.
The Jazz clearly demonstrates that supreme comfort and versatility can
coexist in a small vehicle, even on extended journeys. It’s thanks to the
large supportive seats equipped with a ratchet-style seat height adjuster.
The sporty 3-spoke steering wheel adjusts not only for height but
telescopically for reach too. It is so easy to fi nd a comfortable driving
position to enjoy the incredibly quiet ride. When you need extra cargo
space, the ingenious MAGIC seats let you totally reconfigure the cabin.
The new Jazz proves that small cars can still deliver exceptional driving
pleasure even during long distances. When the highway demands
acceleration, simply press the pedal and Honda’s new, spirited i-VTEC
engine, (100ps 1.4 i-VTEC), responds with instant exhilaration.
The Jazz helps avoid any accidents by keeping you in constant control
with clear visibility, responsive acceleration, agile handling and
outstanding braking performance. Honda’s Anti-lock Braking System,
brake assist and a high-mounted back brake light further contribute to
overall safety. In the event of an accident, advanced safety features and
solid body construction based on Honda’s G-Force Control technology,
help protect you and your passengers. So there’s no doubt that in the
new Honda Jazz, you’ll always have total peace of mind.
GasanZammit Motors Ltd.
With its centre located at the state-of-the-art premises in Mriehel,
GasanZammit Motors Ltd, the newly merged automotive and marine
company, sets standards within its industry with a portfolio of world
renowned brands namely , Capelli, Chevrolet, Ford, Honda, Isuzu,
Jaguar, Mazda, Volvo and Yamaha. Housing an impressive nine brands
that cover the automotive and marine sectors, the new GasanZammit
facility in Mriehel is supported by a fully equipped and modern vehicle
servicing centre, which includes an array of manufacturer-specific
computerised systems. These systems comprise of engine diagnosis and
fault-finding apparatus, brake testers, wheel balancing systems and more.
Other departments encompassing GasanZammit, are a body and spray
shop and a fully stocked parts department responsible for the sourcing,
purchasing and wholesaling of original vehicle parts and accessories for
all the marques represented.

Environmental Monitoring
Environmental Lab Analysis
Consultancy
ECO environmental solutions is a relatively
young company with a mission to provide
professional and comprehensive solutions
related to environmental projects and services.

Ensuring that Malta remains a leader in the pack when it comes to the
Digital Economy takes more than just developing attractive corporate
and tax related incentives or establishing the right structures to produce
sufficient human capital that investors opting for Malta would require.
Legal certainty, through proactive and
forward looking regulation is essential. This
should not simply come as a reaction reflex
and being efficiently rapid in the transposition
of rules emanating from Brussels. The State
should strive to promulgate and promote
endemic legislation which truly reflects
our national aspirations and highlights the
advantages that Malta can indeed offer as an
ICT centre of excellence.
Being competitive in the constantly changing
ICT environment also depends on a
countryâ&#x20AC;&#x2122;s legislative edge and maintaining
your regulatory regime open to innovation
and at the same time pragmatic and devoid
of excessive bureaucratic burdens. The
incredible progress that Malta registered in
the field of ICT policy during the past decade
enabled us to be recognised at an international
level in various fora and served as the
backdrop for the increasing forward direct
investment achieved in relation to ICT. The
ever-increasing number of remote gaming
companies, technology driven financial
services companies as well as other operators
directly involved in information technology
services is a proud testament to this.
This sound success was not only achieved
through strategic and forward looking
government policy but also through the
introduction of legal regimes which mirror our
national realities and aspirations. Throughout
the past years, Malta has established itself as
a true example of proactive and innovative
ICT legislation but much more needs to be
achieved in order to guarantee further growth
of the industry.
One of the first purely local interventions
in our regulatory frameworks mirroring
this legislative pro-activeness was the
introduction of obligations of providers
34 |

www.maltaeconomicupdate.com

of international bandwidth to have
arrangements in place with their competitors
in order to bind them to accept to carry on an
interim basis international traffic originating
from their competitors should the letter
develop a fault on their submarine cables.
The high dependency that our tiny island has
on international bandwidth, especially in the
field of remote gaming and financial services
as well as the faults that were being reported
on such submarine cables as a direct result of
the voluminous sea traffic passing between
Malta and Sicily were the main instigators of
this legislative intervention.
The introduction by the communications
regulator of specific test and trial frequency
licencing schemes aimed at alluring
companieswho wish to carry out further
research and limited trials of new technologies
has also borne fruit.
The incredible progress that Malta
registered in the field of ICT policy
during the past decade enabled us
to be recognised at an international
level in various fora
Malta was the first EU country to regulate
remote gaming. This enabled us to quickly
establish ourselves on the ICT map of this
exciting and expanding niche industry.
The influx of foreign companies and the
establishment of foreign backed start-ups
relating to gaming has been phenomenal and
even though presently the market is going
through a phase of consolidation where the
big players are constantly taking control of
smaller operators the gaming authority is
still receiving interest for new licences and
new business models. The availability of

advantageous corporate structures and the
increasing number of tax related incentives
directly tailored to the creative industry has
also made this possible.
The importance of regulatory and legislative
intervention should never be underestimated.
It is also through technology neutral and
clear legal frameworks that foreign investors
will obtain sufficient piece of mind that
Malta is the place to be.
Malta must remain competitive and a
step ahead. Serious consideration must be
now given to the recognition of present
technologies and how legislation can leverage
accelerated economic growth and sustain FDI
in information technology related industries
and services.
The introduction of specific regulatory and
authorisation schemes relating to cloud
computing services should be on top of the
agenda. Whilst the European Union has only
recently started mulling on the various legal
challenges that cloud computing presents,
Malta has the golden opportunity to be
an important actor and lead the way as it
did in relation to remote gaming through
the strategic introduction of legal models
by which the protection of cloud users is
recognised as well as setting the stage for
the attraction of cloud computing services
operators to Malta.
Furthermore, the introduction of legislation
relating to skills gaming, an increasingly
growing and lucrative industry should not be
left on the back burner. In the field of ICT law,
every day lost means that other jurisdictions
will not only catch up with us more quickly
but enable them to position themselves in a
situation where their national packages are
more attractive and resulting in having the

OPINION

Serious consideration must be
now given to the recognition of
present technologies and how
legislation can leverage accelerated
economic growth and sustain FDI in
information technology

largest multinational players in this field
opting to set up shop elsewhere.
Needless to say, the State must be the primary
driver for this realisation. One bold step in this
direction was the publication of the Digital
Rights White Paper late last year. Whilst the
White Paper proposed the introduction of
a number of digital civil rights in our own
Constitution, such as the right to informational
self-determination,
infrastructure
and
information access rights to our citizens, it also
catered for the recognition that the availability
and ability of electronic communication
networks to business enterprises established
in Malta should be protected and promoted by
the State. In fact, Article 20(A)(3) of the White
Paper proposed that the State should recognise,

promote and protect the ability of enterprises
to access and use services and applications as
well as share and impart information through
information and communication technologies
including
electronic
communications
networks to realise their economic potential
and shall take such appropriate measures to
eliminate any unnecessary restrictions thereto
that are unjustifiable in a democratic society.
But the enactment of these enterprise specific
rights into our laws would be merely setting
the agenda. Clear and specific subsidiary
legislation would be required in order to
reflect and transpose such principles into
concrete negative and positive obligations
on the State. I remainhopeful that the
present administration will recognise and
actively embrace the importance of the

concepts presented in the White Paper and
ensure that, irrespective of the change in
government, Malta keeps focused on the
charted course that will enable our country
to be a true centre of excellence when it
comes to ICT development.
Resting on the laurels of our past achievements
is no option in the fast paced environment of
the technological world we live in.
Dr. Ghio is a partner at Fenech & Fenech
Advocates specialising in ICT Law (www.
fenechlaw.com). He lectures ICT Law and
Cybercrime at the University of Malta
and is the former Chairman of the Malta
Communications Authority and former EU
Digital Champion for Malta. email: antonio.
ghio@fenlex.com
TEU

August 2013 | THE ECONOMIC UPDATE

| 35

RENEWABLE ENERGY

HYDROGEN FUEL CELLS
AND ETHANOL

By Martina Urso

INTRODUCTION
Within the course of recent decades, scientists
are considering the application of alternative
energy sources to save the actual capacity of
energy. This is done in a reasonable economic
and environmentally friendly manner to face
many global challenges related to the rising
consumption of global resources. Alternative
energy sources are not based on splitting of
atoms or burning of fossil fuels.
This approach actually excludes otherwise
atmospheric pollution from nuclear waste byproducts and burning fossil fuels. Hence, the
alternatives that produce less significant impact
on the environment include: solar energy,
wind power, geothermal and hydroelectric
resources. In particular, this argumentative
essay concerns hydrogen fuel cells and ethanol
(as Americaâ&#x20AC;&#x2122;s next alternative fuel) and
discusses the advantages and disadvantages of
hydrogen fuel cells.
GENERAL DISCUSSION
1. Hydrogen fuel cells
The well-developed economies like the
US consider hydrogen as a source of great
environmental potential since this clean
energy fuel significantly reduces economic
dependence on imported energy sources.
Therefore, the US deems hydrogen as the
future alternative to gasoline; however the
issue requires a lot of effort. Initially, the
main issue on the agenda concerns facilities
needed to make, store and move hydrogen.
Furthermore, economical fuel cells, appropriate
technologies, innovative solutions and ecooriented educational programs are the key
prerequisites of the coming transformational
process in the USA.
At present, the US produces more than 9
million metric tonnes of hydrogen, which
is enough to power up to eight million
households or 30 m. vehicles. However, for
the time being, hydrogen is mostly applied for
the industrial purposes, including metallurgy,
refining,
and
food-processing.
The
overwhelming majority of overall amount of
hydrogen production covers only three states:
Louisiana, California, and Texas.
The primary user of hydrogen as an energy
fuel is NASA within the framework of
its space program. Specifically, fuel cells
(hydrogen batteries) are applied to power
electrical systems of the shuttle. Hydrogen
fuel cells are used as efficient means to make
electricity. However, the construction of such
36 |

www.maltaeconomicupdate.com

large batteries (which application excludes
power lines) is still expensive to build, whereas
smaller fuel cells are actively applied to power
electric cars.
Alternatively, fuel cells are also actively applied
as emergency power sources in hospitals
and remote locations. In addition, portable
fuel cells are available to power laptops, cell
phones, and military devices. About 500
vehicles (automobiles and buses) in the USA
are hydrogen-fueled. Electric motors that
use using a fuel cells store hydrogen gas and
convert the hydrogen into electricity for the
motor. Such vehicles are deemed as exclusively
eco-friendly since they do not pollute the
surrounding environment. The issue high
on the forthcoming agenda concerns the
construction of re-fuelling stations available
to power hydrogen cars (Energy Information
Administration, 2008).

C

2. Ethanol

M

Ethanol fuel is widely applied as a biofuel
alternative to gasoline used in vehicles.
Ethanol is easily manufactured and processed
made from ordinary crops, including corn and
sugar cane. Further main advantage is that
ethanol is a renewable resource and can be
used immensely. Most US cars therefore apply
gasoline-ethanol blends reducing the levels
of hazardous emissions in the atmosphere
CONCLUSION
(Goettemoeller and Goettemoeller, 2007).
Furthermore, bio-ethanol is manufactured Overall, for the time being, saving energy
mainly to replace fossil fuels in vehicles. and cutting emissions are two primary
Concerns relate to the large amount of arable concerns challenged by the developed
land required for crops, as well as the energy economies considering the overall call for
and pollution balance of the whole cycle of the sustainable development in the world.
ethanol production. To this end, International Therefore the US is considering hydrogen
Energy Agency states that cellulosic ethanol and ethanol as effective alternative energy
fuels will have enormous economic and sources in the foreseeable future.
TEU

ecological effect in the foreseeable future.
At that, cellulosic ethanol actively resists
cellulose fibers, and widely applied to
generate ethanol in the United States (The
Worldwatch Institute, 2007).

However, the widest application of ethanol is
fuel additive and motor fuel. Namely, ethanol
produced in Brazil is featured by high carbon
sequestration capabilities, and therefore
climate change is combated. For the time
being, there is no 100% pure ethanols approved
as a motor vehicle fuel in the US. Ethanol is
therefore used as an additive to gasoline to
reduce ground-level ozone formation through
reducing hydrocarbon emissions and volatile
organic compound, carcinogenic benzene and
particulate matter emissions.

Shaping the Future of Financial Services in Malta: Delivering in
by Giles Schembri, Partner at KPMG in Malta

The financial services sector in Malta is one
of the main pillars of the Maltese economy
and continues to display resilience, despite
the events that took place in recent years
and months, as the International Monetary
Fund (IMF) also recently pointed out in its
report on Malta. Indeed despite the economic
turbulence in many countries, the financial
services sector in Malta has seen year-on-year
growth, from 6.4% of Gross Value Added in
2009 up to 8.9% in 2012.
In its recent report on Malta, the IMF has
warned that the growth outlook is vulnerable to
external and fiscal risks and it has encouraged
the Maltese authorities to continue to pursue
prudent policies and deepen structural
reforms.
A lot has changed since our last Biennial
Financial Services Conference held in
November 2011 entitled “Maintaining the
Vision – Driving Value from Change”. The
financial services sector globally and in Malta
is being subject to more regulation and will
also invariably be subject to abide to more
stringent rules of conduct.
Against this backdrop however, Malta needs
to shape further its financial services industry
to ensure that, while continued growth in this
sector continues to be achieved, this sector is
well placed to compete with other financial
services centres within the EU in the short
term and more importantly by the start of the
next decade – 2020.
KPMG in Malta will be holding its Biennial
financial services conference. The conference
will delve into the developments that are
taking place within the local and international
spheres and will seek to identify key action
points that need to be addressed as of now
in order to secure the crucial role that this

industry plays in Malta, not only at the present
moment but also in 2020.
It is against this backdrop that we have selected
our panel of international and local renowned
speakers to inaugurate the conference
including Mr Bill Michael, KPMG’s Head
of Financial Services - EMA, the Hon. Prof.
Edward Scicluna, Minister of Finance, Prof.
Joseph Bannister, Chairman of the MFSA and
Prof. Josef Bonnici, Governor of the Central
Bank of Malta, shall feature as our opening
panel of speakers. While no one can predict
the future, the opening plenary session shall
aim to discuss where we are today, what shape
the financial services sector may take in the
next decade, how we might get there and the
key drivers of change.
Through dedicated break-out sessions, the
conference will seek to address the salient
topics in the area of Mergers and Acquisitions,
some key IFRSs that are pertinent to the
financial services sector and Anti-Money
Laundering, with a particular spotlight on
the upcoming challenges for the next decade
as well as addressing ways in which the
industry can prepare itself to rise up to these
tests. Next, the focus will turn towards the
burning priorities for the Banking, Insurance,
Investment Services and Funds sectors.
The conference will be brought to a close
by Hon. Dr. Joseph Muscat, Prime Minister
and Hon. Dr Simon Busuttil, Leader of the
Opposition.
Reflecting upon the substantial changes that
have taken place during the last decade, the
aim of the conference is to bring to the fore
the changes that the financial services sector
in Malta should gear up to in order to sustain
its competitive advantage in this space.
TEU

Editor’s Note
Giles is a partner at KPMG in Malta. Over the past eighteen years
he has principally practised within the Firm’s audit function and
forms part of the Firm’s PPC (area specialist).

38 |

www.maltaeconomicupdate.com

About the conference
This one-day conference will
take place on Tuesday 26
November 2013 at the Hilton
Hotel – Conference Centre, St.
Julians. For further information
on the conference or to be
included in our mailing list,
kindly contact us on
+356 2563 1053 or
conferences@kpmg.com.mt.

MICE

“You don’t have to be great to start,
but you have to start to be great”
It is clear that these words are what Plethora
Dance live and work by.
Plethora Dance strives to bring individuals
and communities together using public
performances, adult dance classes, dance
retreats and FlexiFit classes both in a
professional and community context.
Plethora Dance also offers half day, day and
weekend workshops for office-based workers to
improve fitness and demonstrate office-based
exercises. Dance professionals working with
company management, community workers
and carers provide a great dance experience
regardless of age, fitness and physical
limitations. Plethora Dance are experienced
in organizing tailor-made dance and exercise
classes for individuals and groups of friends and
colleagues both as a fun social activity and as a
team building exercise.
Why FlexiFit?
FlexiFit classes are the perfect opportunity to
help you feel better, work better and play better.

Packed with simple effective exercises, FlexiFit
leaves you feeling refreshed and supple, even
days after class. FlexiFit’s dance based exercises
gives you the ability to move at ease and
perform everyday activities and tasks, pain free.
Classes are led by Sarah Lanzon MRBSoc, a
UK trained professional dancer. She has a vast
experience working with adults and elderly
patients adapting exercises for rehabilitation
and body strengthening. She has worked
extensively in London and around the UK,
including leading regular dance exercise class
with Parkinson’s UK.

When contacting Plethora Dance you’ll be dealing
direct with our dance team, meaning you get first
class service communicating ideas with the people
who can make it happen.

Scheduled FlexiFit classes run for 75 minutes
both mornings and evenings and are limited to
8 people per class, with individual attention and
personalized care.

Plethora Dance is a bespoke dance company, so a
new piece of dance is tailor-made specifically for
your event. Using only the finest dance talent we
bring perfection, precision, style and quality.

Plethora Dance can cater for all themes, settings and
situations - corporate events, conferences, fashion
Plethora Dance also specialises in creating shows, product launches, TV adverts and many more.
new and exciting dance pieces for corporate
For more information contact us on 99490896, or by email on
events and high profile product launches to plethoradance@gmail.com. Like us on Facebook: www.facebook.
com/PlethoraDance. www.danceclassesmalta.com
create an impact.
Plethora Dance for Corporate Events

July 2013 | THE ECONOMIC UPDATE

| 39

NEWSMAKERS

MOTHERWELL BRIDGE DELIVERS, ERECTS
36 CRANES AT BARCELONA CONTAINER TERMINAL
Motherwell Bridge entrusted with new major project in the United Arab
Emirates
Motherwell Bridge has completed the delivery of 36 automatic stacking
cranes to Barcelona container terminal ahead of schedule. The structures,
which add significant value to the terminal’s capabilities and infrastructure,
embrace next-generation technology allowing for efficient container handling
in some of the busiest ports in the world. The ASCs were erected by a team
of 17 of Motherwell Bridge’s highly specialised mechanical and electrical
technicians who were based in Spain for the 18-month project.
Following the expediency of the Barcelona order, Motherwell Bridge has been
entrusted with another major project in the United Arab Emirates, involving
the mechanical erection, electrical installation and commissioning of ASCs.
In the last few days, a team of 24 from the Hal Far engineering company
oversaw the erection of a fourth automatic stacking crane in the United Arab
Emirates. In total, 12 cranes will be erected at the major upcoming container
terminal in the region.
“Motherwell Bridge has been contracted to carry out site erection and
maintenance of port-handling equipment since 2005,” Motherwell Bridge
managing director Tony Mallia said. “We have consistently met our clients’
stringent standards and deadlines. Motherwell Bridge’s excellent track record
has led to significant repeat business and we have put our name to major
projects at key container terminals in Europe and the Middle East.”Electrical
and mechanical maintenance services of port handling equipment and related
maintenance management are core capabilities at Motherwell Bridge. The
company has previously erected 50 rubber tyre gantry cranes to terminals in
Malta, 51 to ports in Spain, and two in Oman.
Motherwell Bridge is now looking to deliver similar container terminal
infrastructure to new clients in Asia. This will see the company deploying
specialist teams at sites in various regions simultaneously, Mr Mallia said.

Motherwell Bridge’s excellent track record has led the company to put its name to major projects at key
container terminals in Europe and the Middle East.

HSBC Malta Commercial Banking launched Instant@dvice, an
online Trade and Receivables Finance service that streamlines and
enhances import and export procedures at no extra cost, saving
traders precious time and money.
Instant@dvice keeps exporters and importers up-to-date with
the status of trade transactions via prompt e-mail services,
offering relevant advice and notifications on the go. This added
convenience makes for greater efficiency and is particularly well
suited for trade customers who travel frequently.
“This is another ‘First in Malta’ product offered by HSBC Malta
Trade and Receivables Finance, which, at no extra charge, offers
numerous benefits for traders, including seamless tracking of
trade documents with the Document Tracker service,” explained
HSBC Malta Head of Commercial Banking Michel Cordina.
“Other Instant@dvice benefits include enhanced accuracy in
document preparation, improved logistics management, and
lower document management costs.”
Instant@dvice improves efficiency by enabling one’s office to
forward non-negotiable copies of export Documentary Credits
(DCs) to respective buyers, freight forwarders, insurance
providers and other trade partners for their reference or action.
Copies of import DCs may also be sent via e-mail immediately
upon issuance by HSBC, saving time and communication costs,
and allowing the customer to start manufacturing and sourcing
processes immediately upon receipt of the relevant DCs.

HSBC Malta launched Instant@dvice, a new Trade and Receivables Finance product to boosts trade for
importers and exporters, at no extra charge.

40 |

www.maltaeconomicupdate.com

For more information about Instant@dvice customers may contact
their HSBC Relationship Manager.

Would you like to further your studies & become an Accountant?

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MEDIA

Media Analysis
By George Carol

TVM news has been confirmed as the most
watched new bulletin on local TV. This has
been confirmed once again by the Media
Warehouse Survey which has just been issued.
The Media Warehouse research analysis is
a detailed study covering the local media,
namely:TV,
Radio,
Newspapers,
and
Magazines. Such aspects as frequency of
viewership,audience share, type of listeners /
viewers/readers, together with many other
factors are examined to give a clear picture
of the media market. The information is
especially relevant when analysed in terms of
the demographics of the Maltese population
allowing the user to identify any relevant
segments in the market.
Essentially, the Media Warehouse is an
independent study, free from any bias, which
ensures an honest and realistic picture of the
media industry. It is ideal for all companies
which venture into advertising campaigns;
for advertising agencies; as well as owners of
media companies.

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www.maltaeconomicupdate.com

The Media Warehouse is issued in April,
covering the periods December, February and
April. The results presented in each of these
detailed research reports give a clear picture
of the three particular weeks analysed during
that period, together with the averaged results
put together, to present a more accurate
overview of the various media.
The research is carried out by means of three
surveys spread out over these three months,
each covering both Malta and Gozo. The
surveys are each carried out over a period of
a week, taking random weeks over a selected
number of months.
Sources very close to the industry informed
the author that during 2006 it is estimated
that 10.56 million euro (9.89 million in 2002)
were spent on newspaper advertising while
just under 5 million euro (almost 4 million in
2002) were spent on magazine advertising. Fifty
percent of the total national advertising budget
is spent on the print media while 39 percent is
spent on the broadcast media (Borg, 2009).

NEWSMAKERS

COMPUNET APPROVED AS AN IBM BUSINESS PARTNER
Compunet, a subsidiary
of the 6PM Group, was
recently approved as an
IBM Business Partner and
IBM
WarrantyService
Provider. IBM is an
industry leader that has a
rich history of innovation
and
excellence
in
informationtechnology.
As an approved Warranty Service Provider, Compunet can offer
warranty services for the IBM products it sells as well as support
for its customers. Compunet is thus responsible, on behalf of
IBM, for customer satisfaction.
It is IBM’s goal that clients get what they want via the strength of
its portfolio and the skills and expertise of its Business Partners.
Set up in 1996, Compunet is a fast growing IT Solutions Provider
with an emphasis on delivering cost-effective and customerfocussed products and services. Combining years of experience
in the IT sector, Compunet hasbecome a leading IT Solutions
Provider to both the consumer and corporate segments.
During 2011, Compunet became part of the 6PM Group.
Today, Compunet offers organisations a multitude of services
including Systems Architecture including Linux, Windows and
Osx; Networking Consultancy; Storage Systems Consultancy;
Server Virtualisation; Virtual Desktop Infrastructure; Systems
and Network Monitoring; IT Auditing; Application Hosting;
Desktop Support Help Desk; Remote Backup Facilities; Data
Centre Consultancy and PCI
Compliance Testing. Through its’ consulting and managed
services arm, Compunet delivers the resources and capabilities
required to assess, design, build and manage an agile, flexible and
reliable IT infrastructure that is capable of meeting the dynamic
needs of any business. By partnering with top international
vendors Compunet can cater for all types of businesses,
irrespective of size and cover a range of industry verticals such
as Banking, Gaming, Health, Government, Telecoms and the
Pharmaceutical industry.

BOV EXTENDS ITS SUMMER OFFERS
Bank of Valletta is extending its
Summer offers on Consumer
Lending throughout September.
Customers will have one
more month to benefit from
discounted interest rates, no
processing fees and an extended
loan term of up to 7 years.
“We are extending our offers in
response to the positive feedback
received since their launch in the
beginning of Summer. The extension is also in line with the Bank’s drive
to continue to consolidate its leadership position in the area of personal
finance. The Bank continues to reinforce its market position as a major
provider of financing options to Maltese individuals by offering a range
of products and providing tailor made solutions to meet individual
needs,” said Albert Frendo Chief Officer Credit, Bank of Valletta.
Further information may be obtained from the Bank’s website www.bov.
com from any BOV branch or by calling BOVs Customer Service Centre
on tel. 21312020 between Mondays and Saturdays, from 8am to 8pm (
excluding bank and public holidays).

MIB REACHES AN AGREEMENT WITH GLOBALCAPITAL
INSURANCE BROKERS TO ACQUIRE BROKING PORTFOLIO.
As part of its strategy to focus on its core insurance business GlobalCapital
plc is exiting the insurance broking market as a result of GlobalCapital
Insurance Brokers (GCIB) divesting of its broking portfolio in favour
of Mediterranean Insurance Brokers (MIB). This portfolio disposal will
allow GlobalCapital to strengthen its market position after announcing its
best results in five years at the AGM last month. This key move expands
MIB’s portfolio while ensuring uninterrupted service for all GlobalCapital
Insurance Broker’s clients.
MIB, the renowned independent insurance intermediary, aims to broaden
its business through the portfolio acquisition, subject to any necessary
regulatory approval, and will be servicing GCIB’s insurance broking
clients with effect from 1st October 2013. This portfolio transition secures
MIB’s position as market leaders in the local insurance brokerage sector.
“We believe this move will prove to be an asset to our customers, as well
as extremely positive for GCIB’s existing clients; this will be a seamless
move for them,” says MIB’s Rob van Ojian. “In this sector, the bigger you
are, the stronger the support you can invest in your clients, with better
potential service and insurance cover for your customers.”
GlobalCapital plc is continuing to pursue its long-term strategy to meet its
value proposition to customers, distribution partners and shareholders.
GlobalCapital Life Insurance now enjoys over 7 per cent market share
of Malta’s regular premium business and the embedded value of its
life insurance business is now well in excess of €13 million signaling a
return to operational strength and encouraging prospects for its key life
insurance and health insurance businesses.
GlobalCapital Group CEO Bashar Khatib said, “We have been in
discussions to divest this insurance broking portfolio while seeking
to ensure that our insurance broking clients continue to receive the
best of service. We are very pleased to have reached agreement with
such a respected institution as MIB and are confident that this is in the
best interest of our broking clients. We also look forward to further
collaboration with MIB in the future. In the insurance sector we are now
focused on the organic growth of our life and health insurance divisions
and are dedicating significant efforts in this regard. GlobalCapital has
in place the people, products, distribution platforms and improved
operational efficiency to take this business forward and to create value to
our clients, stakeholders and shareholders.”
As the independent broking arm of the MIB Insurance Group, MIB
has a history of handling Malta’s most complex and extensive insurance
programmes by offering the right balance of local expertise and
international professional standards and resources. With over 35 years
of success and a dedicated team of professionally-qualified insurance
experts, the company is renowned for handling all lines of insurance
cover, claims administration and Risk Management Consulting, giving
its clients the deserved holistic solution in the protection of their assets.
“With that in mind, growth has long been a very important feature within
MIB’s strategy,” Mr van Oyian continues. “So, when this opportunity
presented itself, we were keen to act on it. We believe it will continue to
fortify our core market and reinforce our niche offering of tailor-made
products for both commercial and corporate clients, as well as highlight
our attention to detail across the board.”
GlobalCapital Insurance Brokers Limited is licensed to act as an
insurance broker and is regulated by the Malta Financial Services
Authority. Registered address: GlobalCapital Insurance Brokers Limited,
Testaferrata Street, Ta’ Xbiex XBX 1403, Malta. Mediterranean Insurance
Brokers (Malta) Ltd. is licensed to act as an Insurance Broker and is
regulated by the Malta Financial Services Authority. Registered Address:
Mediterranean Insurance Brokers (Malta) Ltd. 53 MIB House, Abate
Rigord Street, Ta’ Xbiex XBX 1122, Malta.

August 2013 | THE ECONOMIC UPDATE

| 43

ASSURENCE AND TAX
NEWSMAKERS

A UNIQUE APPROACH TO DEBT COLLECTION
SERVICES IN MALTA
Credit Mediation Services
Ltd has officially been
nominated as the first
official debt collection
service company to be
affiliated with The Malta
Association of Credit
Management (MACM)
- a members-owned,
non-profit
making
organisation, providing a central national organisation for the
promotion and protection of all credit interests pertaining to
Maltese businesses.
Set up recently, Credit Mediation Services is a modern and
forward-thinking debt recovery company with a flair for
achieving results. Credit Mediation Services is led by an
individual with unparalleled experience in fraud and credit
control. The company’s highly-trained team does not apply
hard and fast rules for the recovery of debts. Instead it offers
its clients tailor-made services to perfectly fit their unique
requirements – adopting procedures based on particular
business requirements, nuances and budgets.
“We are honoured and humbled to be the credit mediation
service officially affiliated with MACM,” says Mr. Richard
Padovani, Managing Director at Credit Mediation Services,
“we pride ourselves at providing a tried-and-tested one-stopshop approach to debt recovery. Our company can manage
debt effectively right from that first credit application form
all the way through to the final legal process – encompassing
mediation, research, debtor chasing, on-the-ground tracking
and, if all else fails, comprehensive legal recovery”.

MSV LIFE P.L.C. DONATES NEW CARPETS TO TEATRU MANOEL
MSV Life p.l.c. will be the sole sponsor of new carpets to
be installed in the front-of-house and auditorium of Teatru
Manoel. This is part of an on-going refurbishment project of
the Theatre which has, so far, included the redecoration of the
foyer, the VIP room, the staircase, the three tiers as well as each
of the doors of the 53 boxes. Specifically designed new chairs
for the tier boxes were also installed and the sofas, mirrors and
chandeliers were all restored.
The new fire retardant carpet, manufactured by Axminster,
is being especially woven for the Theatre to match the wellknown green décor of the Manoel and its baroque interior. The
new carpet will be installed in the stalls, up both staircases and
on the landings of Tiers 1, 2, and 3. MSV Life p.l.c. has funded
the total cost of this project.
MSV Life p.l.c. (MSV) is the leading provider of life insurance
protection, long term savings and retirement planning in
Malta. It is also a regular sponsor of sports and cultural events.
David Curmi, CEO, stated, “We are supporting Teatru Manoel
not only for the essential contribution it makes to the country’s
cultural sector but also to help preserve and manage one of the
most historic buildings we have”.
Teatru Manoel’s CEO, Ray Attard, “We are extremely grateful
to MSV Life p.l.c for their support. It is impossible for us to fulfil
our artistic obligations as well as our responsibility to maintain
such an old and beautiful theatre without external support.
The new carpets will be a very visible important addition to the
refurbishments which will undoubtedly enhance the Theatre’s
appearance and the audiences’ experience”.

Josef Busuttil, Director General at MACM reiterates that
“Accounts Receivable or Debtors is one of the largest liquid
assets of a business. This entails meticulous analysis and
monitoring of the credit worthiness of credit customers,
complimented by timely collection of dues. Hence, this
affiliation is a step in the right direction to the benefit of all
local businesses as it should provide a comprehensive credit
service to secure smooth running of the business in an effective
and efficient manner.”
MSV Life p.l.c. CEO David Curmi presenting the donation to Teatru Manoel CEO Ray Attard

GOZITAN BUSINESS FEATURED ON HSBC GROUP’S TRADE RADAR

The fourth edition of Trade Radar, an HSBC Group publication on global trade,
is available free of charge to HSBC Malta commercial customers, offering fresh
insight into global trends and business opportunities.
Among the diverse topics covered, including growth opportunities in Mexico,
ethical product sourcing and intellectual property protection, this edition includes
the success story of a Gozitan business, Magro Brothers, which has expanded its
operation globally through its trusted partnership with HSBC Malta. Today, some
55% of Magro Brothers’s €24 million turnover comes from export.
“Trade Radar drives international trade by sharing expertise and experiences on
global trends, opportunities and threats,” said HSBC Malta Head of Commercial
Banking Michel Cordina. “Readers find HSBC’s Trade Radar particularly
effective due to its emphasis on actual trade scenarios, the in-depth research
and analysis behind its articles and a focus on practical advice born of HSBC’s
vast expertise in international trade.”